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EXPORTING  TO 
LATIN  AMERICA 


EXPORTING    TO 
LATIN  AMERICA 

A  HANDBOOK  FOR 

MERCHANTS,  MANUFACTURERS 

AND  EXPORTERS 


BY 

ERNST  B.   FILSINGER 

CONSUL  OF  COSTA  RICA  AND  ECUADOR. 

F0RMI3RLY  PRESIDENT  AND  COMMISSIONER  TO 

LATIN  AMERICA  OF  THF  LATIN  AMERICAN 

FOREIGN  TRADE  ASSOCIATION. 


WITH  A  FOREWORD  BY 
DR.    LEO   S.   ROWE 

PBOFESBOB  OF  ECONOMICS,  UNIVEB8ITT  OF  PENN8TLVANIA 


D.  APPLETON  AND  COMPANY 
NEW  YORK  LONDON 


Copyright,  1916,  by 
D.  APPLETON  AND  COMPANY 


Printed  in  the  United  States  of  America 


TO 

MY   WIFE 

SAEA  TEASDALE  FILSINGER 


FOREWORD 

It  is  a  curious  fact  that  American  merchants  and  manu- 
facturers have  been  less  eager  than  their  European  rivals  to  accept 
advice  and  suggestion  with  reference  to  the  development  of  foreign 
trade;  in  fact,  for  many  years  such  advice  was  resented  as  a  re- 
flection on  the  native  capacity  of  the  American  business  man.  It 
is  only  within  recent  years  that  we  find  developing  a  real  and 
sincere  desire  to  ascertain  the  business  principles  which  will 
enable  the  American  exporter  to  meet  the  competition  of  his 
European  rival. 

The  clear  and  systematic  presentation  of  the  conditions  neces- 
sary to  the  development  of  foreign  trade  made  by  Mr.  Filsinger 
means  a  real  national  service,  a  service  which  will  be  appreciated 
by  our  merchants  and  manufacturers.  The  author's  conclusions 
are  based  on  personal  study  and  observation,  and  although  he  does 
not  claim  to  say  the  last  word  on  the  subject,  his  advice  and  sug- 
gestions will  be  of  great  value.  His  presentation  shows  that  suc- 
cessful competition  for  Latin  American  trade  is  not  merely  a  ques- 
tion of  prices  but  involves  a  great  number  of  other  considerations — 
questions  of  credit,  adaptation  to  local  taste,  willingness  to  con- 
form to  local  commercial  methods.  With  information  concerning 
the  requisites  of  Latin  American  trade  thus  made  accessible  in 
clear  and  compact  form,  American  merchants  and  manufacturers 
can  no  longer  complain  if  they  fail  because  of  ignorance  of  the 
conditions  upon  which  the  expansion  of  that  trade  depends. 

University  of  Pennsylvania, 
June  20,  1916. 

L.  S.  EovTE. 


PREFACE 

For  a  long  time  the  author  has  felt  the  need  of  a  book  which 
would  deal  adequately  with  the  subject  of  exporting  to  Latin 
America  and  provide  for  the  business  man  a  complete  and  concise 
analysis  of  Latin  American  trade  and  a  guide  to  the  best  means  of 
obtaining  it. 

The  literature  attempting  to  deal  with  this  question  has  been 
of  a  haphazard  character,  full  of  generalities  and  lacking  in  the 
succinct  treatment  so  necessary  to  a  thorough  understanding  of 
Latin  American  trade  problems. 

The  contents  of  this  book  will  be  easily  grasped,  even  by  the 
hastiest  reader,  because  of  the  titles  to  paragraphs  based  on  the 
principle  of  the  newspaper  headline. 

This  volume  is  written  from  the  business  man's  standpoint  and 
everything  that  smacked  of  the  purely  academic  has  been  avoided, 
in  order  that  the  book  may  be  thoroughly  practical.  It  should 
prove  of  particular  value  to  commercial  travelers,  students  of  ex- 
port problems,  government  officials,  officers  of  export  associations 
and  many  other  groups  interested  in  export  trade  besides  mer- 
chants and  manufacturers. 

In  the  Appendix  are  included  lists  of  books  useful  in  the  study 
of  Latin  American  trade  from  the  general  and  technical  stand- 
points. The  lists  of  technical  dictionaries,  aids  to  correspondence, 
grammars,  readers,  etc.,  should  be  of  interest  to  the  student  of 
Spanish  and  Portuguese.  Statistics  and  other  data  have  been 
presented  in  the  most  succinct  and  logical  fashion  to  aid  the  busi- 
ness man  in  studying  Latin  American  trade  possibilities. 

The  European  War  forced  a  complete  readjustment  of  the 
commercial  relations  of  the  Latin  American  rep\ihlics  and  as  a 

U 


PREFACE 

direct  consequence  vast  opportunities  were  opened  to  American 
business  men.  The  extent  to  which  these  are  taken  advantage  of 
will  determine  the  future  of  North  American  commerce  with  Latin 
America.  That  this  volume  will  serve  to  further  American  inter- 
est in  the  southern  trade  fields  is  the  hope  of  the  author. 

The  Author  desires  to  express  his  thanks  to  many  trade  organ- 
izations, magazines,  and  individuals  for  the  information  furnished 
during  the  preparation  of  this  volume.  He  is  especially  grateful 
to  the  staffs  of  the  Pan-American  Union  and  the  Bureau  of  For- 
eign and  Domestic  Commerce  for  invaluable  aid.  Their  publica- 
tions have  been  freely  consulted  and  many  of  the  books  and  pam- 
phlets listed  in  the  Appendix  have  likewise  been  drawn  upon  for 
facts.  The  author  regrets  that  because  of  the  wide  range  of  the 
book  an  individual  acknowledgment  in  every  case  is  impossible. 

Ernst  B.  Filsinqer 
St.  Louis,  Missouri 


CONTENTS 

CHAPTXB  '^O* 

I.  Analysis  of  Commerce  with  Latin  America.  Busi- 
ness Conditions  and  Trade  Opportunities.  Out- 
look FOR  THE  Future 1 

II.    How    TO     Study     the     Latin     American     Trade 

Problem        14 

III.  Methods     of     Building     Business     with     Latin 

America.    Cooperation  by  Merchants       ...       33 

IV.  European  and  American  Methods  Contrasted       .       44 
Y.    Export   Commission   Houses  and  Export  Agents. 

Their  Functions 57 

VI.    Traveling  Salesmen.     General  and  Local  Agents      81 
VII.    Planning  a  Sales  Trip.    Conditions  of  Travel  in 

Latin  America 114 

Vin.    The  Merchants  of  Latin  America.     Their  Busi- 
ness Customs  and  Methods.     The  Stores  and 

Shops 124 

IX.    Correspondence  with  Latin  American  Merchants. 

Kecords  and  Filing 137 

X.    Handling    of     Orders.     Packing    and    Marking. 

Marine  Insurance 151 

XL    Invoices,  Consular  Invoices,  Shipping  Documents, 
Freight    Forwarding,    Ocean    Freight    Rates, 
Marine  Insurance,  Banking  Documents  .     .     .     172 
XII.    Credits  in  Latin  America.   Terms,  Financing,  Col- 
lecting Past  Due  Accounts 201 

XIII.  Banking     Situation.       Financial     Conditions     in 

Latin  America.    Sterling  and  Dollar  Exchange    213 

XIV.  Tariffs,  Custom  House  Regulations,  and  Taxes  in 

Latin  America 228 

zi 


xli  CONTENTS 

CHAPTEB  PAOS 

XV.     Catalogs,    Price    Lists,    Quotations,    Discounts. 

Standards  of  Measure  and  Value       ....     239 

XVI.    Latin  American  Trade  Lists  and  Directories    .     .     254 
XVII.    Advertising  in   Latin   American   Newspapers   and 

Magazines 260 

XVIII.     The  Parcel  Post  and  Mail  Order  Business  with 

Latin  America 277 

XIX.     Trade-marks,    Laws    and    Regulations    in    Latin 

America' 287 

XX.    Helpful  Factors  in   the  Development   of  Latin 

American  Business 297 

XXI.     The  Pan-American  Canal.     Its  Effect  on  Latin 

American  Tr.\de.     The  Pan-American  Railway  306 
XXII.    Railroad  and  Steamship  Facilities;  The  Effect  of 

Steamship  Rates  on  Latin  American  Commerce  310 

XXIII.  Governmental  Assistance  to  American  Exporters  314 

XXIV.  American  Consuls.     Their  Service  to  Exporters  324 

XXV.  Organized  Efforts  for  Pan-American  Commercial 
Relations.  The  Pan-American  Bureau.  Con- 
ferences, Conventions 334 

XXVI.    How  Business  Organizations   May  Aid   Manufac- 
turers IN  Latin  American  Trade  Extension  .     •     347 

XXVIL  The  Opportunities  for  Young  Men  in  Latin 
America.  Commercul  Education  for  Foreign 
Trade 362 

XXVIII.    Products    and    Manufactures    Salable    in    Latin 

America 368 

Appendix 389 

Some  Features  of  the  Latin  American  Climates  389 

The    Seasons    in   Latin   America 389 

A  Detailed   Description   of  the  Latin   American 

Republics  from  the  Commercial  Standpoint     .  392 

Aids  to  Study  of  Export  Problems     ....  464 

Cable  Codes 465 

Aids  to  Correspondence 466 

Atlases   and  Gazetteers 472 

Books  and  Publications  concerning  Latin  Amer- 
ica, Its  Commerce  and  Opportunities     .      .      .  473 
Typical  Advertising  Rates  in  Export  Journals     .  497 


CONTENTS  xiii 

PAGE 

List   of  the   Principal   Directories   of   the  Latin 

American  Eepublics 498 

Banks,   Banking  Houses   and  Foreign  Exchange 

Brokers  in  New  York  City 504 

Principal   Banks  of  the  Large  Latin  American 

Cities .     506 

Latin  American  Monetary  Units  with  Approxi- 
mate Values  in  United  States  Gold  Dollar     .     510 
Distances  to  Principal  Latin  American  Cities  in 

Nautical  Miles 510 

Cable  Rates  to  Latin  America 510 

Embassies  and  Legations  from  the  United  States 

to  the  Latin  American  Republics     ....     512 
Embassies  and  Legations  from  the  Latin  Ameri- 
can Republics  to   the  United   States     .      .      .     513 
Presidents  of  the  Latin  American  Republics  and 

Terms  of  Office 514 

Foreign  Freight  Forwarders  in  New  York  .  .  515 
Steamship  Lines  to  Latin  American  Republics  .  516 
Requirements   for   Consular  Documents   Exacted 

by  Latin  American  Republics 520 

List  of  American  Consulates  in  Latin  America    .     522 

The  Use  of  Reply  Coupons 524 

Money  Order  Fees  for  Latin  America  .  .  .  524 
Latin  American  Countries  to  which  the  Parcel 

Post   Extends 525 

Table  of  Mail   Time  from  New  York  to  Latin 

American    Cities       ....;....     526 
Weights   and   Measures   Used   in  Latin   America     527 
Distribution  by  Countries  of  Capital  of  Citizens 
of  the  United  States  Invested  in  Latin  America     528 

Commerce    with    Latin    America 529 

Comparative   Table  of   South  American  Exports     529 
Clubs  and  Societies  for  Better  Pan-American  Re- 
lations         531 

Typical  Tours  of  Latin  America 533 

Taxes    Charged    Commercial   Travelers   in   Latin 

America 534 

Population  of  the  Latin  American  Countries  Ac- 
cording to  Classes 540 

Pan-American  Affairs  in  Colleges  and  Universi- 
ties         545 


xiv  CONTENTS 

PAOB 

Branch  Offices  of  the  Bureau  of  Foreign  and  Do- 
mestic Commerce 547 

Cooperative  District  Offices 548 

Index 549 


EXPORTING   TO 
LATIN  AMERICA 


EXPORTING  TO  LATIN 
AMERICA 


CHAPTER  I 

ANALYSIS  OF  COIMIVIERCE  WITH  LATIN  AMERICA.  BUSINESS 
CONDITIONS  AND  TRADE  OPPORTUNITIES.  OUTLOOK  FOR 
THE  FUTURE 

Introduction. — Within  the  last  decade  there  has  developed  an 
extraordinary  interest  in  Latin  American  trade.  Until  very 
recently  the  export  business  of  the  United  States  was  subordinated 
to  the  domestic  commerce  incidental  to  the  exploitation  of  the 
resources  of  this  country,  but  a  marked  change  has  occurred. 
Students  of  American  political  economy  have  frequently  pointed 
out  the  necessity  of  trade  development  with  foreign  countries  so 
that  there  may  be  in  existence,  when  needed,  markets  to  absorb 
the  surplus  manufactures,  in  order  to  maintain  a  credit  balance 
of  trade  for  the  welfare  of  the  nation.  However,  the  chief  reason 
for  the  unusual  interest  in  the  Southern  trade  fields  must  be 
sought  elsewhere. 

The  Agitation  for  Foreign  Trade. — For  years  there  has  been  con- 
stant agitation  by  newspapers,  export  journals,  individuals,  and 
organizations  interested  in  fostering  the  growth  of  North  Ameri- 
can commerce  with  Latin  America  primarily  from  the  standpoint 
of  gain,  and  they  have  cited  the  innumerable  advantages  that 
would  redound  to  the  benefit  of  the  United  States  by  controlling 
the  vast  commerce  of  the  Latin  American  republics.  The  suc- 
cess achieved  by  a  number  of  far-seeing  American  corporations 
and  export  houses,  which  have  established  a  large  business  in  Latin 
America  because  of  their  persistent,  intelligent,  individual  efforts, 
was  often  referred  to.     The  construction  of  the  Panama  Canal 

1 


2  EXPORTING  TO  LATIN  AMEBIC  A 

also  served  to  stimulate  interest^  but  a  climax  was  reached  when 
the  European  War  profoundly  affected  commercial  conditions  in 
the  Latin  American  states. 

The  Influence  of  the  European  War. — The  business  relations 
which  had  existed  for  a  long  period  between  the  importers  of 
the  Latin  American  republics  and  their  European  connections 
were  interrupted,  and  as  far  as  Germany  and  certain  portions 
of  Belgium  were  concerned,  ceased  entirely.  The  markets  for 
the  products  of  Latin  America  in  European  countries  were  ad- 
versely affected ;  banking  arrangements  in  many  instances  were 
rudely  terminated,  and  for  a  considerable  period  chaos  reigned 
in  the  business  world  of  Latin  America.  This  condition  of  affairs 
served  to  focus  the  attention  of  the  United  States  on  the  great 
possibilities  of  the  Southern  trade  fields,  and  although  economic 
conditions  did  not  justify  the  expectation  of  immediate  profits, 
the  opportunities,  when  conditions  should  again  become  normal, 
were  quickly  foreseen. 

What  Latin  America  Embraces. — Latin  America  includes  the 
twenty  republics  of  Mexico,  Cuba,  Santo  Domingo,  Haiti,  Guate- 
mala, Honduras,  Salvador,  Nicaragua,  Costa  Rica,  Panama, 
Colombia,  Ecuador,  Peru,  Bolivia,  Chile,  Argentina,  Paraguay, 
Uruguay,  Brazil  and  Venezuela.  The  term  "Latin  America"  does 
not  include  Porto  Rico,  a  territory  of  the  United  States,  nor 
the  Guianas  (French,  English  and  Dutch  possessions),  nor  British 
Honduras. 

Area  of  Latin  America. — The  area  of  the  countries  which  are 
included  in  Latin  America  is  approximately  8,700,000  square 
miles.  This  is  two  and  one-third  times  that  of  the  United  States, 
not  including  Alaska  and  the  Insular  possessions.  The  population, 
according  to  the  latest  reports,  is  50,000,000.  Of  the  twenty 
republics,  one  of  them  alone,  Brazil,  has  an  area  of  3,500,000 
square  miles,  being  equal  to  the  area  of  the  continental  United 
States,  excluding  Alaska,  with  the  area  of  twenty-five  states  the 
^ize  of  Delaware  added  to  this. 

Physical  Characteristics. — If  the  student  of  Latin  America  will 
examine  a  geographical  globe  he  will  be  struck  by  the  fact  that 
South  America  might  with  great  propriety  be  called  Southeast 
America.  The  easterly  range  of  the  Western  Continent  is  so 
great  that  more  than  three-quarters  of  the  western  coast  of  South 


ANALYSIS  OF  COMMERCE  WITH  LATIN  AMERICA     3 

America  lies  to  the  east  of  New  York  City.  South  America  and 
Africa  are  in  closer  proximity  than  New  Orleans  and  the  northern 
coast  of  South  America.  These  facts  have  an  important  bearing 
on  commerce.  A  further  index  to  trade  possibilities  of  Latin 
American  countries  is  found  in  their  physical  characteristics. 
From  Mexico  to  Chile,  the  countries  are  traversed  by  mountain 
ranges.  In  South  America  these  are  the  Andes,  some  of  whose 
peaks  reach  an  altitude  of  over  20,000  feet.  There  are  great 
plateau  regions  lying  at  varying  altitudes  from  5,000  to  10,000 
feet.  The  great  rivers,  such  as  the  Amazon,  Orinoco,  and  Magda- 
lena,  with  their  confluents,  provide  commercial  highways  from 
the  ocean  to  important  centers  of  trade  inland,  often  inaccessible 
to  railroads.  There  are  numerous  fertile  valleys,  arid  deserts, 
low  sandy  coastal  regions,  and  regions  of  eternal  snow.  On  the 
western  coast  of  South  America  the  Antarctic  current  exerts  an 
important  influence  on  the  climate,  cooling  the  air  within  100 
or  200  miles  of  the  equator.  In  the  chapter  devoted  to  a  considera- 
tion of  the  individual  countries,  the  physical  characteristics  peculiar 
to  each  will  be  elal)orated. 

Great  Variety  of  Climate. — Within  the  vast  Latin  American  ter- 
ritory there  are  climates  far  more  varied  than,  yet  not  so  variable 
as,  in  the  L^nited  States.  The  various  regions  may  be  divided  into 
four  zones:  (1)  the  tierras  calientes  or  the  hot  lowlands;  (2) 
the  tierras  templadas  or  temperate  regions  of  the  plateaus  and 
valleys  of  the  uplands  with  almost  continuous  spring;  (3)  the 
tierras  frias,  or  colder  regions,  such  as  the  fertile  plateau  of 
Quito  in  Ecuador  at  an  elevation  of  9,300  feet;  (-4)  the  tierras 
nevadas  or  regions  of  perpetual  snow.  The  climate,  even  in  the 
countries  immediately  at  the  equal  or,  in  general  is  healthful,  as 
the  sea  winds  temper  the  heat.  The  rainfall  varies  greatly,  but 
in  the  tropical  lowland  regions  is  very  heavy.  The  southern 
portions  of  Argentina  and  Chile  possess  a  climate  which  is  identical 
with  that  of  the  northern  latitudes  of  the  United  States,  the  most 
severe  cold  being  felt  during  the  months  which  constitute  the 
North  American  summer.  The  effect  of  altitude  on  climate  is  of 
extraordinary  importance  and  must  always  be  considered  by  the 
student  of  Latin  American  trade  opportunities.  The  failure  to 
realize  that  many  important  cities  of  the  Southern  countries  are 
located  on  plateaus  or  among  mountains  accounts  for  the  aoA-- 


4  EXPOHTIXG  TO  LATIX  AMERICA 

success  of  many  American  firms  in  the  Latin  American  trade 
fields. 

Resources  of  Latin  America. — Because  of  the  physical  configura- 
tion and  the  wide  range  of  climates,  the  resources  of  Latin 
America  are  phenomenal.  The  chief  source  of  wealth  is  agri- 
culture and  the  products  of  the  tropical,  semitropical  and  tem- 
perate zones  are  all  found  in  great  abundance.  Sugar,  tobacco, 
coffee,  cacao,  rubber,  fruits,  fibers  and  medicinal  plants  are  the 
principal  tropical  products.  Of  the  products  of  the  temperate 
regions,  corn,  cereals  (mainly  wheat),  and  all  sorts  of  fruits  and 
vegetables  common  to  the  same  climate  of  the  United  States  are 
grown.  The  great  expanses  and  grassy  plains  provide  food  for 
herds  of  live  stock,  with  a  consequent  great  wealth  in  hides,  meat, 
bones,  and  other  animal  products.  The  forests  of  Latin  America, 
in  most  places,  are  as  undeveloped  as  at  the  time  of  the  discovery 
of  America.  Their  riches  of  rubber,  dye  woods,  hardwoods  and 
every  variety  of  timber  suitable  for  construction,  will  be  an  im- 
portant contribution  to  the  wealth  of  Latin  America  in  the  years 
to  come.  The  mineral  deposits  are  inconceivably  great.  Almost 
every  kind  of  metal  is  mined,  gold,  silver  and  copper  predominat- 
ing, although  vast  deposits  of  coal  are  being  steadily  uncovered; 
and  their  importance  in  the  future  development  of  industrial 
Latin  America  cannot  be  overestimated.  The  nitrates,  alone,  of 
Chile  form  the  chief  basis  of  the  wealth  of  that  republic,  while 
the  diamond  mines  of  Brazil  and  the  emerald  mines  of  Colombia 
may  also  be  cited.  Sources  of  enormous  latent  power  that  only 
need  development  are  found  in  the  great  waterfalls  and  the 
rapidly  flowing  rivers.  The  outlook  for  the  future  commercial 
development  seems  boundless. 

Mines  and  Minerals. — One  of  the  chief  sources  of  Latin  Amer- 
ican wealth  is  mining,  this  having  been  the  first  activity  engaged  in 
by  the  Spaniards  who  discovered  South  America.  Since  they 
began  their  workings,  great  quantities  of  metal  have  been  taken 
from  the  mines  of  Peru,  Bolivia,  Chile,  Colombia,  Mexico,  and  other 
countries.  Vast  as  was  this  output,  the  deposits  have  scarcely 
been  touched,  and  untold  millions  still  await  modern  methods 
and  machinery.  It  requires  but  little  imagination  to  realize  what 
effect  the  development  of  this  great  industry  will  have  on  the 
imports  of  the  Ignited  States.     The  operations  incidental  to  the 


ANALYSIS  OF  COMMEECE  WITH  LATIX  AMEEICA     5 

development  of  the  mines  offer  opportunities  for  the  sale  of 
American  manufactures  in  the  shape  of  machinery  and  tools,  and, 
above  all,  for  the  employment  of  skilled  and  trained  Americans. 
Eailroad  and  construction  work  in  general  also  will  necessitate 
the  importation  of  American  manufactures  of  all  sorts. 

Importance  of  Agriculture. — The  interest  of  the  iVmerican  man- 
ufacturer and  exporter  in  the  agriculture  of  Latin  America  is 
easily  imderstood.  In  many  agricultural  districts  the  implements 
used  are  still  of  the  most  primitive  character.  With  the  increase 
of  wealth  and  wider  use  of  educational  facilities  will  come  an 
increased  demand  for  machinery,  implements,  and  tools  of  every 
sort  suitable  for  the  cultivation  of  agricultural  products.  It  is 
almost  impossible  to  appreciate  the  enormous  wealth  which  will 
follow  the  use  of  modern  intensive  methods  and  highly  specialized 
implements  by  the  people  of  regions  so  favored  by  nature.  There 
are  farming  regions  where  the  breaking  of  the  ground  with  a 
plow  is  but  rarely  seen,  and  where  the  natives  have  been  unable, 
because  of  their  poverty,  to  take  advantage  of  modern  methods. 
However,  rapid  progress,  when  one  considers  the  conservative 
nature  of  the  inhabitants,  has  been  made  during  the  last  two 
decades  in  introducing  newer  methods,  tools,  and  implements. 
The  only  limit  to  the  development  of  trade  in  this  direction  is  the 
individual  effort  of  the  American  manufacturer  to  demonstrate 
the  utility  and  value  of  machinery  and  implements. 

Opportunities  in  Forestry. — Vast  acres  of  land,  suitable  for  agri- 
culture, still  remain  on  which  the  clearing  must  be  done.  Until 
now  this  has  been  accomplished  by  old-fashioned  methods  of  the 
most  primitive  sort.  In  the  future  this  will  be  done  by  modern 
methods,  and  in  the  meantime  there  is  great  need  for  machinery, 
tools  and  implements  used  in  the  timber  and  lumber  business. 

General  Conditions  in  Latin  America. — The  Latin  American 
republics  offer  many  startling  contrasts.  The  advances  that  have 
been  made  in  all  branches  of  endeavor  have  been  notable,  but  it 
may  be  stated  without  exaggeration  that  they  are  insignificant 
in  comparison  to  the  development  that  will  take  place  during 
the  next  fifty  years.  Although  there  are  many  great  capitals 
with  enormous  wealth  and  a  high  degree  of  culture  and  civiliza- 
tion comparable  to  that  of  the  best  of  Europe  or  America,  there 
are,  on  the  other  hand,  regions  where  conditions  are  still  of  the 


6  EXPOETIXG  TO  LATIN  AMERICA 

most  primitive.  In  considering  the  possibilities  of  United  States 
trade  expansion  with  Latin  America,  it  is  necessary  to  reckon 
with  several  factors.  The  most  important  are :  increase  of 
population,  increase  of  wealth,  and  influence  of  capital  invest- 
ment. The  increase  of  wealth  has  been  little  short  of  marvelous. 
The  increase  of  population,  however,  has  not  kept  apace.  The 
investment  of  foreign  capital  has  unquestionably  been  followed 
by  an  enormous  growth  in  the  business  of  those  nations  that 
made  these  investments.  A  discussion  of  these  factors  will  follow 
later.  Perhaps  the  most  important  item  in  considering  the  future 
of  Latin  America  is  the  increase  of  wealth.  The  student  will  be 
struck  by  the  very  large  percentage  of  the  peasant  or  peon  class. 
This  portion  of  the  population  possesses  an  extremely  limited 
purchasing  power,  because  of  its  poverty.  In  the  most  advanced 
of  the  Latin  American  republics,  educational  facilities  are  being 
supplied  at  an  extremely  rapid  rate,  and  it  is  easy  to  foresee  that 
this  policy  will  result  in  the  establishment  of  new  standards  of 
living.  As  a  direct  result  of  education  will  come  increased  wages, 
followed  by  greater  purchasing  power.  In  this  connection  it  is 
interesting  to  contrast  a  few  examples.  In  Costa  Rica  the  imports 
per  capita  in  1914  were  $21.13.  Costa  Eica  is  one  of  the  most 
advanced  of  the  Central  American  countries,  with  a  very  high 
degree  of  development  and  percentage  of  literacy.  On  the  other 
hand,  the  Republic  of  Guatemala  with  a  population  of  2,120,000, 
had  a  per  capita  trade  of  only  $4.75.  Although  the  population 
is  much  larger  than  that  of  Costa  Rica,  its  peasant  population 
with  extremely  limited  buying  power  is  so  large  that  the  business 
per  capita  is  much  reduced. 

Capital  Investment  Increases  Business,. — In  analyzing  the  busi- 
ness of  the  Latin  American  republics  with  foreign  countries,  one 
is  quickly  impressed  with  the  fact  that  trade  follows  capital 
investment.  The  countries  whose  capitalists  have  made  the  heaviest 
investments  in  Latin  America  enjoy  a  trade  in  relative  proportion 
to  such  investments.  According  to  the  most  competent  authorities 
a  conservative  estimate  of  the  amount  of  capital  of  citizens  of 
the  United  States  invested  in  Latin  America  is  in  the  neighborhood 
of  $1,725,450,000.  Of  this  great  sum  $750,000,000  is  invested  in 
Mexico,  $150,000,000  in  Brazil,  $40,000,000  in  Argentina, 
$35,000,000  in  Peru,  and  $40,000,000  in  Central  America.     The 


ANALYSIS  OF  COMMEECE  WITH  LATIN  AMERICA     7 

rest  is  distributed  in  other  republics  iu  smaller  amounts.  If 
these  tigures  are  analyzed  and  contrasted  with  the  investments  of 
any  foreign  country — for  instance,  Great  Britain — it  will  be  seen 
that  the  countries  in  which  Great  Britain's  investments  pre- 
ponderate show  larger  importations  from  Great  Britain,  The 
private  interests  of  Great  Britain  in  Argentina  represent 
$2,000,000,000,  in  Brazil  $1,200,000,000,  in  Uruguay  $250,- 
000,000,  in  Chile  $320,000,000.  These  figures  are  significant  inas- 
much as  they  demonstrate  that  with  the  growth  of  North  American 
investments  in  the  Latin  American  republics  will  come  an  increased 
demand  for  American  manufactures,  and  the  alert  business  man 
who  prepares  to  take  advantage  of  these  opportunities  will  reap 
the  benefit. 

Building  for  the  Future. — The  merchant  or  manufacturer  who 
interests  himself  in  Latin  American  trade  does  so  because  of 
possibilities  for  gain.  He  is  not  interested  in  an  academic  dis- 
cussion of  economic  laws.  One  of  the  fundamentals  in  considering 
such  trade  extensions  is  the  possibilities  of  the  Southern  countries 
in  the  years  to  come.  It  requires  but  little  imagination  to  realize 
that  the  vast  resources  of  Latin  America  have  scarcely  been  touched, 
and  that  there  is  practically  no  limit  to  the  opportunities  there. 
The  development  of  the  immense  resources  of  Latin  America  will 
make  that  field  a  most  promising  market  for  the  manufacturing 
nations  of  the  world,  particularly  the  United  States.  For  an 
indefinite  period  the  people  of  the  southern  republics  will  continue 
to  import  manufactured  products  as  the  countries  are  essentially 
agricultural  and,  with  the  exception  of  Argentina,  Brazil  and 
Chile,  are  nonindustrial.  In  the  last  three  countries,  where  manu- 
facturing is  already  being  done,  it  may  eventually  assume  some 
importance  because  of  deposits  of  iron  ore,  water  power,  and,  in  the 
case  of  Chile,  coal.  Meanwhile,  these  republics  afford  excellent 
fields  for  American  enterprise.  The  wise  business  man  who  con- 
templates a  Latin  American  business  is  he  who  builds  for  the 
future.  He  does  not  solely  consider  in  his  calculations  the  ques- 
tion of  profit  for  one  or  two  years,  but  has  in  mind  the  establish- 
ment of  a  business  which  shall  maintain  a  healthy  growth  in 
proportion  to  the  increasing  buying  power  of  Latin  America. 

How  to  Realize  the  Possibilities. — Opportunities  for  trade  exten- 
sion  in   Latin   America   have   already   been   touched   upon.      The 


8  EXPOETING  TO  LATIN  AMERICA 

possibility  for  realizing  them  depends  solely  on  intelligent,  per- 
sistent, individual  effort.  The  great  commerce  of  England,  Ger- 
many, and  France  has  not  resulted  from  what  the  governments 
did,  but  is  mainly  the  achievement  of  private  enterprise.  While 
many  Latin  American  buyers  are  somewhat  influenced  by  nation- 
ality, they  are  not,  as  a  rule,  affected  by  the  origin  of  the  product 
they  import.  They  are  swayed  solely  by  the  influences  which 
determine  successful  merchandising  in  the  United  States.  The 
necessities  of  the  American  manufacturers  who  wish  to  do  business 
with  Latin  America  are:  (1)  An  absolute  understanding  of  the 
requirements  of  the  market  it  is  proposed  to  enter.  This  is 
accomplished  by  analysis,  self-education,  study,  and  investigation ; 
(2)  an  intelligent,  systematic,  persistent  effort  to  extend  business 
with  the  importer,  based  on  principles  which  will  make  for 
permanent  trade;  (3)  to  observe  the  utmost  accuracy,  and  devote 
the  greatest  possible  attention  to  detail  in  every  phase  of  trade 
relations. 

Much  Criticism  Unmerited. — In  the  discussion  of  trade  oppor- 
tunities in  Latin  America,  the  custom  of  criticizing  American  firms 
is  very  common,  and  while  in  the  past  there  has  been  reason  for 
certain  criticism,  the  improvements  have  been  continuous  and 
marked.  It  is  unfair  to  make  a  general  condemnation  of  American 
export  methods.  Commercial  practices  of  representative  North 
Americans  who  deal  with  Latin  America  are  in  every  way  equal 
to  those  of  their  European  competitors.  Manufacturers  who  have 
earnestly  sought  to  increase  their  trade  with  Latin  America  have 
been  ready  and  anxious  to  conform  to  all  requirements.  There  is 
not  the  slightest  doubt  that  Americans  who  determine  to  win 
Latin  American  trade  can  accomplish  this  as  easily  as  have  their 
European  competitors  or  the  pioneers  of  the  United  States  who 
have  been  so  successful  in  this  field. 

Countries  Grouped  According  to  Business  Methods. — It  has  been 
stated  that  analysis  and  investigation  are  indispensable  to  an  under- 
standing of  conditions  that  prevail  in  Latin  America.  For  the 
convenience  of  business  men,  students,  and  those  interested  in  the 
commerce  of  Latin  America,  a  rough  grouping  of  the  countries 
may  be  helpful.  This  is  an  entirely  arbitrary  arrangement  but 
will  lend  itself  to  an  easier  analysis  of  trade  conditions,  and  will 
be  found  useful  in  considering  the  export  problem.    The  countries 


ANALYSIS  OF  COMMERCE  WITH  LATIN  AMERICA     9 

are  placed  in  six  groups,*  based  on  general  political  conditions, 
organization  of  banking  systems,  and  advancement  along  com- 
mercial lines  in  general. 

Group  1.  Cuba,  Mexico,  Panama,  Porto  Rico.  It  is  im- 
portant to  note  that  Porto  Rico  is  not  a  Latin  American  country, 
being  a  territory  of  the  United  States.  However,  the  business 
conditions  in  Porto  Rico  are  identical  with  those  of  Cuba  and 
Mexico,  and  may  therefore  be  properly  considered  in  that  con- 
nection. 

Group  2.     Haiti  and  Santo  Domingo. 

Group  3.  Northern  South  America :  Colombia,  Venezuela 
and  Ecuador. 

Group  4,    Western  South  America :    Chile,  Peru  and  Bolivia. 

Group  5.  Eastern  South  America:  Argentine  Republic,  Bra- 
zil, Paraguay  and  Uruguay. 

Group  6.  Central  America :  Costa  Rica,  Guatemala,  Hon- 
duras, Nicaragua,  Salvador. 

Conditions  in  Group  1. — In  Cuba  and  Panama  there  is,  to  all 
practical  purposes,  complete  self-government  and  established  po- 
litical order.  This  is  also  true  of  Mexico  when  the  country  is  not 
disrupted  by  political  strife.  In  these  countries  American  cap- 
italists have  made  their  greatest  investments,  including  railways, 
mines,  plantations,  sugar  mills,  street  railways,  water  power  enter- 
prises, etc.  The  banking  business  is  highly  developed  as  many 
American  banks  have  extremely  close  connections  with  the  banks 
of  these  countries,  and  there  are  many  banking  institutions  which 
were  established  by  Americans,  and  naturally  assist  American 
enterprises. 

Business  is  done  practically  as  in  the  United  States,  upon  open 
credit.  The  American  manufacturer  is  accustomed  to  deal  direct 
with  the  importer.  Because  of  the  fact  that  shipments  are  made 
on  open  account  it  not  infrequently  happens  that  many  perfectly 
responsible  concerns  are  somewhat  tardy  in  meeting  their  obliga- 
tions. With  them  the  factor  of  time  is  a  very  important  considera- 
tion, as  it  is  in  many  agricultural  districts  of  the  United  States. 
Credit  conditions  in  Cuba  are  on  the  whole  very  good,  but,   as 

^  These  groups  are  similar  to  those  suggested  by  W.  C.  Downs  in  the 
Quarterly  Journal  of  Economics,  The  Author  has,  however,  made  a  slight 
rearrangement. 


10  EXPORTING  TO  LATIN  AMERICA 

everywhere,  all  applicants  for  credit  should  be  carefully  investi- 
gated. In  Mexico,  because  of  the  recent  political  disturbances, 
unusual  care  must  be  exercised.  In  Porto  Rico  there  are  many 
responsible  firms,  but  because  of  the  very  rapid  development  of 
the  business  in  that  island,  caution  is  advisable.  In  Panama 
conditions  are  practically  the  same  as  in  Porto  Rico. 

Conditions  in  Group  2. — Within  the  past  few  years  there  has  been 
a  notable  change  in  the  countries  of  Haiti  and  Santo  Domingo. 
While  these  republics  in  the  past  have  had  very  unstable  political 
conditions,  the  establishment  of  what  is  in  reality  a  protectorate 
of  the  United  States  over  Santo  Domingo  has  resulted  in  a  con- 
siderable improvement.  The  custom  of  selling  direct  to  the  im- 
porters of  these  countries  is  rapidly  growing,  although  business 
relations  formerly  were  on  basis  of  barter,  or  an  exchange  of 
products  for  the  manufactures  of  the  United  States.  In  the 
past  the  importer  and  exporter  have  generally  been  the  same 
person,  but,  latterly,  specializing  is  leading  to  the  establishment 
of  a  greater  number  of  stores  and  shops  devoted  to  specific  lines 
of  merchandise.  The  banking  conditions  are  likewise  improving, 
and  the  investment  of  American  capital  is  proving  beneficial  to 
American  trade. 

Conditions  in  Group  3. — Unlike  Haiti  and  Santo  Domingo,  the 
republics  of  northern  South  America  have  not  been  so  strongly 
under  the  American  influence.  The  conditions  in  these  republics, 
therefore,  are  somewhat  dissimilar.  The  small  number  of  banks 
in  the  republics  is  very  noticeable  and  trading,  therefore,  takes 
the  place  of  banking,  particularly  in  the  more  remote  places,  where 
business  is  conducted  on  the  basis  of  barter.  In  this  field,  the 
New  York  export  houses  play  an  important  role,  inasmuch  as  they 
accept  the  products  of  these  countries  and  also  extend  credit  when 
shipping  merchandise. 

Political  conditions,  while  improving,  have  not  yet  reached  the 
high  level  of  those  which  obtain  in  the  countries  represented  by 
Group  5. 

Conditions  in  Group  4. — The  republics  of  Chile,  Peru,  and 
Bolivia  in  the  western  part  of  South  America  have  made  notice- 
able progress  as  a  whole,  and  commercial  conditions  arc  greatly  in 
advance  of  those  in  the  countries  Just  described.  Especially  is 
this  true  of  the  republic  of  Chile,  which  might  properly  be  included 


ANALYSIS  OF  COMMERCE  WITH  LATIN  AMERICA    11 

in  the  same  category  with  the  Argentine  Republic  and  Brazil. 
These  countries  possess  well  organized  banking  systems  which 
represent  both  foreign  and  local  capital.  All  of  these  banks,  no 
matter  what  nationality,  French,  German,  or  English,  have 
correspondents  in  New  York,  through  whom  their  business  is 
transacted.  The  foreign  banks  have  a  particularly  strong  repre- 
sentation and  the  heavy  investment  of  European  capital  has  re- 
sulted in  a  preponderance  of  trade  with  European  nations.  Com- 
mercial practices  generally  are  far  in  advance  of  those  in  Groups 
2  and  3. 

Conditions  in  Group  5,. — The  countries  making  up  this  group, 
Argentine  Republic,  Brazil,  Paraguay,  and  Uruguay,  represent  the 
very  highest  development  of  commercial  enterprise.  In  these 
republics  there  is  a  very  extensive  international  banking  system 
which  greatly  influences  business  methods.  Specializing  is  com- 
monly practiced,  and  the  importer  is  very  seldom  an  exporter. 
The  merchants  and  manufacturers  are  in  direct  touch  with  the 
markets  of  the  world,  and  by  cable  follow  the  fluctuations,  of 
commodity  costs.  It  is  in  these  republics  that  direct  trade  rela- 
tions, when  properly  managed,  can  be  productive  of  greatest 
results.  The  political  conditions  in  this  group  are  about  identical 
with  those  in  Group  1. 

Conditions  in  Group  6. — In  the  republics  of  Central  America 
business  conditions  are  somewhat  different  from  those  in  the  coun- 
tries in  Groups  1  and  2.  In  several  of  these  republics,  notably 
Costa  Rica  and  Salvador,  there  is  a  highly  developed  banking 
system  and  excellent  machinery  for  exchange.  To  a  lesser  degree 
is  this  true  of  Guatemala.  In  Nicaragua  and  Honduras  the  condi- 
tions are  similar  to  those  of  Group  3.  In  Costa  Rica  business  is 
carried  on  more  as  in  Cuba  or  Mexico  and  specializing  is  highly 
developed.  Its  political  stability  is  also  permanent.  The  other 
republics  which  have  been  less  stable  from  the  political  standpoint 
are  not  so  highly  developed,  and  business  conditions  are  rather 
more  backward.  Particularly  is  this  so  on  the  eastern  coast  of 
Nicaragua  and  Honduras,  where  the  importer  carries  on  a  trading 
business,  buying  the  products  of  his  clients  in  the  interior,  to  whom 
he  forwards  shipments  of  merchandise.  In  the  capitals  of  these 
republics  trading  is  more  highly  specialized  and  business  generally 
is     done     on     open     account     although     with     the     merchants 


12  EXPORTING  TO  LATIN  AMERICA 

in  some  of  the  republics  transactions  are  still  made  against  ac- 
ceptances. In  this  field,  on  account  of  proximity,  the  business 
houses  of  New  Orleans  wield  a  greater  influence  than  the  New  York 
export  commercial  firms. 

Another  Economic  Arrangement. — Another  outline  for  a  division 
of  South  America  (suggested  by  Wm.  H.  Lough)  is  the  Amazon 
Basin  comprising  Northern  Brazil,  and  the  eastern  part  of  Peru 
and  Bolivia;  the  River  Plata  Basin  including  Southern  Brazil 
and  Argentine;  the  West  Coast  region  beyond  the  Andes;  and 
the  North  Coast  comprising  Colombia  and  Venezuela.  Because 
of  the  peculiar  characteristics  of  each  of  these  trade  fields,  they 
should  be  separately  considered. 

The  Importance  of  Analysis. — In  order  to  form  an  adequate  idea 
of  the  possibilities  of  Latin  American  trade,  it  is  indispensable  to 
analyze  the  importations.  Statistics,  while  generally  looked  upon 
as  very  dull  and  uninteresting,  are  in  reality  an  important  factor. 
They  should  be  studied  not  only  by  those  already  engaged  in  the 
export  business  as  a  key  to  what  is  being  done  by  competitors, 
but  particularly  by  those  who  desire  to  obtain  an  idea  of  the  possi- 
bilities of  these  countries  for  the  sale  of  their  products.  The 
manufacturer  seeking  a  Latin  American  market  should  not  content 
himself  merely  with  an  examination  of  the  imports  of  a  given 
country  from  the  United  States,  but  should  know  what  is  being 
sold  to  that  republic  by  competitive  nations.  He  should  likewise 
determine  the  exports  per  capita  of  a  country  in  which  he  is 
interested.  Not  only  should  he  analyze  the  statistics  of  his  par- 
ticular manufactures  but  of  business  generally.  Such  an  analysis 
will  aid  materially  to  obtain  a  better  knowledge  of  the  opportunities 
in  a  particular  country. 

Details  of  the  Commerce. — The  details  of  the  commerce  between 
the  United  States  and  the  Latin  American  republics  will  be  found 
of  great  value  in  studying  Latin  American  trade  problems.  Inter- 
esting tables  are  given  on  page  529  of  the  Ap^:)endix. 

The  Percentage  of  Imports  From  United  States. — The  United 
States  today  supplies  38  per  cent,  of  the  imports  of  Latin  America 
and  takes  39  per  cent,  of  the  exports.  To  the  remainder  of 
the  world  the  United  States  supplies  about  14  per  cent,  of  its 
imports  and  takes  only  7  per  cent,  of  the  exports.  The  percentage 
of  the  growth  of  United   States  exports  to  Latin  America  was 


ANALYSIS  OF  COMMERCE  WITH  LATIN  AMERICA    13 

equaled  by  those  of  Great  Britain,  and  the  percentage  of  Ger- 
many's growth  in  that  trade,  until  the  outbreak  of  the  European 
War,  was  also  as  great  as  that  of  the  United  States. 

The  Relation  of  Proximity  to  Imports. — One  of  the  striking  facts 
that  must  be  remembered  in  connection  with  the  imports  of  Latin 
America  is  that  the  United  States  supplies  from.  30  per  cent,  to 
60  per  cent,  of  the  imports  of  the  republics  which  are  nearer  to  this 
country  than  to  Europe,  that  is  to  say,  Mexico,  Central  America, 
the  West  -Indies  and  the  northern  countries  of  South  America. 
Those  countries  which  are  as  near  to  Europe  as  the  United  States 
namely,  Brazil,  Uruguay,  Paraguay,  Argentina  and  the  West  Coast, 
take  from  10  per  cent,  to  20  per  cent. 


CHAPTER  II 

HOW  TO  STUDY  THE  LATIN  AMERICAN  TRADE  PROBLEM 

Introduction. — Although  an  interest  in  the  development  of  busi- 
ness with  Latin  America  has  been  growing  for  some  years,  the 
European  War  stimulated  manufacturers  and  merchants  of  the 
United  States  to  extend  their  trade  with  Mexico,  Central  America, 
Cuba,  Porto  Eico,  the  West  Indies,  and  South  America.  Interest 
in  this  trade  is  being  manifested  not  only  by  houses  that  are  for 
the  first  time  taking  up  the  matter  of  extending  their  activities 
to  foreign  fields  in  a  systematic  manner,  but  particularly  by  those 
firms  who  have  already  been  actively  engaged  in  exporting.  Of 
the  latter  class  many  houses  realize  that  this  branch  of  their 
business  is  still  short  of  what  it  should  be  and  feel  that  their 
present  efforts  are  not  meeting  with  the  success  that  they  deserve ; 
but  they  are  convinced  that  their  sales,  with  proper  effort,  could 
be  materially  increased. 

Scientific  Study  Necessary. — The  situation  created  by  the 
European  War  brought  business  men  to  the  realization  that  a  suc- 
cessful export  business  is  not  to  be  created  overnight  and  that  in 
order  to  develop  it,  carefully  evolved  plans  must  be  put  into  action. 
Such  plans  cannot  bo  made  without  much  serious  study,  not  only 
of  the  conditions  prevailing  in  Latin  America,  but  of  the  merchant's 
own  business  in  relation  to  them.  If  this  plan  had  been  adopted 
by  merchants  in  the  past,  much  of  their  prejudice  against  export 
trade  could  have  been  avoided. 

A  Penurious  Policy  Shortsighted. — The  attitude  of  many  busi- 
ness men  toward  this  question  is  difficult  to  understand.  In- 
numerable instances  may  be  cited  of  executives,  otherwise  broad- 
minded  and  liberal,  who,  in  creating  a  domestic  demand  for  their 
products,  display  great  imagination  but  refuse  to  authorize  ex- 
jH'nditures  for  the  investigation  of  the  Latin  American  field. 
When  a  haphazard  or  slipshod  attempt  to  do  business  there  is 
jnade,  the  result  is  disastrous. 

U 


HOW  TO  STUDY  THE  TRADE  PROBLEM     15 

Development  of  Domestic  Business  Expensive. — In  order  to 
develop  a  business  in  the  home  market,  it  is  necessary  to  expend 
sums  ranging  from  insignificant  amounts  to  many  thousands  of 
dollars  before  the  business  becomes  profitable.  On  the  other  hand, 
heads  of  concerns,  who  would  not  have  taken  any  decisive  step 
involving  great  expense  in  this  country  without  deliberate  con- 
sideration, are  willing  to  send  their  representatives  to  the  Latin 
American  republics  wholly  unprepared  and  with  no  knowledge 
whatever  of  conditions.  In  the  future  the  most  successful  houses 
will  be  those  whose  departments  of  Latin  American  trade  investiga- 
tion are  the  best  organized,  and  who,  before  any  salesmen  are  sent, 
will  thoroughly  study  the  situation. 

Specific  Information  Indispensable. — The  prime  need  of  students 
of  the  Latin  American  trade  field  is  specific  facts.  There  is  no 
other  commercial  topic  about  which  there  have  been  offered  so 
many  useless  suggestions,  glittering  generalities,  and  valueless 
hints. 

A  Knowledge  of  Latin  America. — Naturally  the  first  requisite  to 
an  understanding  of  the  possibilities  of  Latin  America  is  an 
acquaintance  with  the  geographical  conditions  of  the  prospective 
field.  No  attempt  to  develop  a  trade  with  Latin  America  should 
be  made  without  a  thorough  study  of  the  physical  conditions 
which  prevail  there,  its  people,  trade,  etc.,  and  besides  this  a  knowl- 
edge of  the  distances,  the  means  of  transportation,  of  the  ports,  the 
strategic  business  points,  etc.  These  facts  can  easily  be  learned  by 
a  thorough  study  of  the  countries  in  which  it  is  proposed  to  de- 
velop trade. 

Using  the  Encyclopedia  and  Gazetteer. — In  every  public  library 
may  be  found  the  latest  encyclopedias,  gazetteers,  etc.  The  pur- 
chase of  a  dependable  atlas  and  the  study  of  a  good  commercial 
geography  may  be  strongly  recommended  in  addition  to  reading 
books  of  travel;  works  relating  to  the  individual  countries  will 
also  be  found  very  helpful.  On  pages  472-473  of  the  Appendix 
will  be  found  lists  of  leading  books  of  this  character. 

The  statistics  and  other  information  concerning  the  individual 
countries,  as  they  are  published  yearly  in  the  "Statesman's  Year 
Book"  will  also  prove  valuable  and  make  for  the  scientific  efficiency 
so  necessary  to  a  thorough  mastery  of  foreign  trade  problems. 
Other  volumes  which  may  be  recommended  are  the  "South  Amer- 


16  EXPOETING  TO  LATIN  AMERICA 

ican  Year  Book,"  the  "Argentine  Year  Book,"  the  "Brazilian 
Year  Book,"  etc.  The  statistics  are  adequate  and  much  additional 
information  is  available  in  these  publications,  which  are  usually 
found  in  public  libraries. 

The  Factor  of  Adaptability  to  Latin  American  Demand. — In  con- 
sidering the  possibility  of  an  export  business  and  in  order  to 
determine  what  should  be  studied,  the  business  man  should  put  to 
himself  the  following  questions : 

1.  Which  items  among  our  products  can  be  exported  to  Latin 
America  ? 

2.  Can  they  be  marketed  in  all  the  Latin  American  countries  or 
only  in  certain  ones? 

3.  Are  they  adapted  to  the  needs  and  requirements  of  all  sec- 
tions of  a  country,  or  only  to  a  certain  limited  field  therein? 

4.  Can  they  be  sold  just  as  they  are  now  made,  or  are  certain 
changes  necessary  in  shape,  size  and  appearance?  If  changes  are 
essential,  can  we  make  them? 

5.  Are  the  labels,  finish,  color  and  other  details  the  most 
appropriate  for  the  market? 

6.  To  what  classes  of  the  population  can  they  be  sold? 

7.  If  no  demand  already  exists,  can  one  be  created?  In  that 
case  what  is  the  best  method  to  pursue? 

8.  Will  our  product  compete  successfully  with  foreign  products 
of  a  similar  character? 

9.  How  do  the  tariffs  in  the  Latin  American  republics  affect  the 
sale  of  our  product?  Has  the  European  manufacturer  any  ad- 
vantage in  this  respect?  If  so,  how  can  it  be  overcome,  and  what 
means  must  be  taken  to  meet  any  peculiar  tariff  restrictions? 

10.  Does  the  matter  of  freight  or  transportation  charges  affect 
the  possibilities  of  sales? 

11.  Are  there  any  local  conditions  which  would  make  it  im- 
possible to  place  our  product  in  certain  countries  or  districts?  In 
that  case,  what  are  these? 

13.  What  is  the  most  desirable  field  in  which  to  make  a 
start  ? 

In  considering  the  foregoing  questions,  the  manufacturer  will 
have  a  foundation  on  which  to  base  his  study  of  the  export  situa- 
tion, and  of  the  adaptability  of  his  goods  to  the  foreign  markets. 

Other  Factors  to  be  Considered. — The  ability  of  a  merchant  to 


HOW  TO  STUDY  THE  TEADE  PEOBLEM     17 

create  an  export  business  is  dependent  upon  important  factors  other 
than  a  careful  study  of  the  problems  suggested  in  the  preceding 
paragraphs.  These  factors  are  of  equal  importance  and  should 
have  careful  thought.  The  earnest  business  man  who  believes 
himself  in  a  position  to  export  to  Latin  America  must  determine 
where  to  make  a  start.  Latin  America  is  such  a  vast  field  and  the 
difficulties  of  properly  effecting  sales  to  all  parts  of  it  are  so  great 
that  it  is  highly  desirable,  in  making  a  beginning,  to  enter  a 
field  which  offers  the  least  amount  of  difficulty.  How  then  can 
this  be  determined  ?  Only  careful  study  and  a  consideration  of 
all  details  will  enable  the  beginner  with  no  expert  knowledge  to 
decide  where  his  efforts  will  be  productive  of  results  in  the  shortest 
possible  time.  Certain  conditions  affect  this  just  as  they  do  domestic 
trade  and  may  be  outlined  roughly  as  follows: 

1.  Proximity  of  the  territory. 

2.  Size  of  the  field. 

3.  Desirability  of  the  trade. 

4.  Methods  of  doing  business. 

5.  Terms  to  be  extended. 

6.  Competition  to  be  met. 

7.  Immediate  prospects  and  future  possibilities. 

8.  Capital  of  the  exporter. 

9.  Organization. 

10.  Sales  methods. 

11.  Attention  to  documents  and  details. 

The  Advantage  of  Proximity. — The  question  of  distance  is 
always  an  important  factor,  for  a  country  with  which  correspond- 
ence can  be  conducted  with  the  minimum  expenditure  and  time 
offers,  naturally,  certain  advantages.  Proximity,  however,  should 
not  decide  this  question,  for  the  reason  that  some  of  the  most 
attractive  trade  fields  are  located  at  a  distance.  The  beginner, 
however,  would  have  certain  advantages  in  making  a  start  in  the 
republics  of  Mexico  or  Cuba,  provided  that  after  investigation  and 
study  either  of  these  fields  seems  to  offer  possibilities  as  attractive 
as  those  of  Uruguay  or  Chile- 

The  Size  of  the  Field. — The  geographical  size  of  a  country  should 
not  influence  a  prospective  exporter  as  to  its  possibilities.  Many 
products,  because  of  their  nature,  would  have  a  much  larger  sale 
in  a  smaller  than  a  larger  country. 


18  EXPORTING  TO  LATIN  AMEEICA 

Desirability  in  Relation  to  Cost. — The  desirability  of  a  market 
is  dependent  upon  two  factors:  (1)  the  largest  possible  volume  of 
business  at  minimum  expense;  and  (2)  the  rapidity  with  which 
the  business  may  be  secured. 

These  can  be  determined  only  by  a  careful  analysis  of  the 
general  business  being  transacted,  its  relation  to  the  population, 
the  volume  of  exports  of  similar  or  the  same  articles,  the  general 
prosperity  of  the  people — in  fact,  by  the  same  rules  as  those 
governing  domestic  trade. 

Methods  of  Doing  Business. — The  business  man  must  determine 
the  most  advantageous  methods  of  making  sales  in  Latin  America. 
This  naturally  includes  a  consideration  of  direct  sales  or  agency 
arrangements  in  relation  to  payments.  Under  certain  conditions 
it  may  prove  more  desirable  to  deal  with  a  general  importer  who 
undertakes  distribution  and  is  responsible  to  the  manufacturer 
for  all  shipments,  than  to  sell  on  credit  to  individual  small  buyers. 
Export  commission  houses  where  maximum  sales  and  efficient 
representation  can  be  assured  may  likewise  prove  the  logical 
means  for  certain  fields.  Exportation  direct  to  individual  mer- 
chants may,  in  other  countries,  offer  the  greatest  opportunities. 

Terms  to  be  Extended. — An  important  factor  in  export  business 
is  the  subject  of  terms.  To  the  beginner  it  would  be  preferable 
to  sell  his  merchandise  direct  to  responsible  merchants  on  terms 
averaging  sixty  days  (which  could  be  done  in  Cuba  or  Mexico), 
in  preference  to  marketing  them  even  through  an  agency  in  the 
Eepublic  of  Colombia  on  terms  of  four  to  six  months.  In  this  case, 
again,  proximity  is  an  important  factor,  for  on  account  of  the 
shorter  distance  to  Cuba  and  Mexico  less  time  is  expected  by  the 
dealer.  Generally  speaking,  Latin  American  merchants  desire  time 
for  making  payments,  and  this  is  not  due  wholly  to  lack  of  capital, 
but  because  of  the  various  methods  of  doing  business. 

Character  of  Possible  Competition. — The  question  of  competi- 
tion, both  American  and  foreign,  is  one  that  invariably  presents 
itself  to  the  thoughtful  business  man  who  wishes  to  extend  his 
trade.  It  is  only  when  he  is  acquainted  with  these  conditions  that 
he  can  properly  prepare  his  samples,  establish  his  prices,  and 
definitely  fix  his  terms.  There  are  fields  in  Latin  America  in 
which  the  shipper  of  certain  products  would  find  competition  less 
keen  than  in  others.    In  a  country  which  is  developing  rapidly  as 


HOW  TO  STUDY  THE  TRADE  PROBLEM     19 

is  Latin  America  a  virgin  territory  may  be  the  one  to  approach. 
On  the  other  hand,  it  will  be  frequently  found  that  because  of  the 
educational  work  that  has  been  done  in  older  fields  by  those  who 
have  already  introduced  certain  articles,  sales  can  be  made  much 
more  easily.  The  fact,  therefore,  that  merchants  of  his  own 
country  as  well  as  representatives  of  European  houses  are  in 
active  competition,  should  not  deter  an  American  merchant  from 
attempting  to  gain  a  foothold  in  a  warmly  contested  field. 

Eventual  Profits  Outweigh  Immediate  Success. — The  farseeing 
business  man,  accustomed  to  look  upon  expenditures  in  the  develop- 
ment of  his  business  not  as  a  dead  expense  but  as  an  investment, 
will  take  into  serious  account  not  only  the  immediate  prospects  in 
a  given  territory,  but  more  particularly  its  future  possibilities.  It 
is  a  recognized  fact  in  foreign  markets  that  much  missionary 
introductory  work  must  be  done.  As  this  is  a  condition  faced 
daily  in  the  domestic  field  it  should  not  frighten  the  manufacturer 
who  seeks  foreign  business.  A  country  which  apparently  does 
not  offer  brilliant  immediate  prospects  may,  nevertheless,  because 
of  the  character  of  the  work  to  be  done  therein  by  competent 
representatives,  afford  the  finest  possibilities  for  the  future.  This 
serious  question  can  most  easily  be  determined  by  deciding  what 
shall  be  the  policy  of  the  manufacturer  in  Latin  American  busi- 
ness. If  a  conscientious  and  earnest  effort  is  made,  and  if  it  is 
decided  to  establish  a  business  on  a  firm  foundation  by  intelligent 
work,  then  the  prospects  of  large  immediate  sales  may  well 
be  put  aside  in  the  knowledge  that  the  future  is  full  of 
promise. 

Capital  of  the  Exporter. — The  necessity  for  the  outlay,  by  the 
importer,  of  large  sums  of  money  for  duty,  etc.,  makes  the  goods 
worth  far  more  than  the  amount  of  the  invoice.  In  certain  coun- 
tries where  parity  of  exchange  has  not  been  established  by  law, 
serious  fluctuations  occur  in  the  value  of  the  currency  with 
possibilities  of  great  loss.  The  careful  Latin  American  buyer, 
knowing  of  this  condition,  endeavors  to  protect  himself  by  every 
possible  means.  He  desires,  for  the  purpose  of  maintaining  his 
credit  standing,  to  have  the  matter  of  terms  definitely  agreed 
upon  beforehand,  that  he  may  have  a  sufficient  margin  of  time 
in  which  to  take  advantage  of  favorable  fluctuations  for  payment. 
The  manufacturer  who  is  considering  doing  an  export  trade  must 


20  EXPORTING  TO  LATIN"  AMEEICA 

study  his  finances  carefully  to  determine  that  he  is  possessed  of 
a  sufficient  capital  properly  to  care  for  the  the  needs  of  his  busi- 
ness. Many  commercial  houses  who  are  accustomed  to  do  a  do- 
mestic business  and  seek  trade  abroad  fail  to  remember  that  a 
larger  capital  is  required  for  the  export  trade  than  for  the  home 
market.     This  is  due  to  the  following  causes: 

(1)  Outlay  for  development  work  or  experimental  campaigns. 

(2)  Time  consumed  in  awaiting  returns  from  shipments. 

(3)  Special  requirements  necessitating  additional  expenditures 
for  machinery,  stock,  material,  etc. 

(4)  Carrying  on  hand  a  stock  of  special  styles  for  the  Latin 
American  trade. 

A  house  that  is  successful  in  building  an  export  business  and 
allows  it  to  absorb  too  much  of  its  capital  may  soon  find  itself 
overextended.  This  may  happen  more  quickly  than  can  be  realized. 
The  returns  from  shipments  as  a  result  of  liberal  credits  will 
not  be  received  quickly  enough  or  as  soon  as  expected.  The  result 
may  be  an  impairment  of  credit.  Houses  which  have  sufficient 
capital  for  domestic  business  and  may  be  succeeding  very  well 
need  to  consider  carefully  if  it  is  possible  to  finance  an  extra  volume 
of  business.  However,  exporters  who  are  able  to  discount  their 
drafts  can  help  themselves  materially.  This  is  considered  in  Chap- 
ter XIII.  As  a  rule,  an  export  business  develops  slowly  and  can 
generally  be  financed  as  it  grows. 

The  Importance  of  Efficient  Organization. — This  is  a  factor  over- 
looked by  many  concerns  seeking  to  extend  their  foreign  business. 
By  "organization"  is  meant  the  ability  of  the  working  force  of 
the  manufacturer  properly  to  care  for  foreign  trade.  It  also  in- 
volves the  question  of  appropriate  machinery,  tools,  or  instruments 
to  fulfill  export  requirements.  It  likewise  takes  into  account  the 
nonsuccess  of  many  attempts  at  export  business  because  of  failure 
to  delegate  the  matter  to  the  exclusive  attention  of  one  person. 
Orders  that  have  been  the  result  of  great  effort  have  been  handled 
in  the  ordinary  manner  in  which  domestic  business  is  attended  to, 
with  consequent  disastrous  results.  A  prime  requisite  of  an  export 
business  is  the  appointment  of  one  particular  member  of  tlie 
organization  to  have  full  authority  on  matters  pertaining  thereto. 
In  this  way  responsibility  may  be  definitely  fixed.  Such  an  indi- 
vidual, usually  known  as  the  manager  of  the  foreign  department, 


HOW  TO  STUDY  THE  TRADE  PROBLEM     ^t 

should  be  required  to  study  the  foreign  trade  situation  and  should 
be  held  accountable  for  all   details. 

Organization  of  an  Export  Department. — The  American  houses 
which  have  been  most  successful  in  Latin  America  have  found  it 
necessary  to  place  the  direction  of  this  branch  of  their  business 
in  the  hands  of  one  individual.  As  will  be  noted  in  later  chapters, 
the  development  of  Latin  American  business  is  usually  a  slow 
process  and,  as  a  rule,  its  care  will  not  require  the  exclusive  atten- 
tion of  one  person.  If  it  can  be  arranged  that  an  executive  direct 
it,  it  will  be  desirable  to  do  so.  In  any  event  there  are  so  many 
details  which  require  attention  in  connection  with  foreign  trade 
development  that  the  greatest  efficiency  is  assured  only  by  definitely 
placing  the  responsibility. 

Export  Department  Heads. — In  many  instances  those  who  direct 
the  export  business  for  large  companies  have  been  developed  within 
the  organization.  This  is  a  matter  which  the  individual  manu- 
facturer must  decide.  Often  an  employee,  who  applies  himself 
definitely  to  a  study  of  Latin  American  trade  problems,  will  prove 
far  more  efficient  because  of  his  knowledge  of  the  business  than 
one  who  is  engaged  because  of  his  acquaintance  with  Latin 
American  trade.  On  the  other  hand,  the  services  of  men  experi- 
enced in  Latin  America,  who  have  traveled  there,  or  who  have  been 
in  the  employ  of  other  exporting  concerns,  may  enable  the  manu- 
facturer who  had  not  previously  studied  the  situation  to  build 
up  more  quickly  and  economically  a  business  in  the  new  field. 
The  usual  methods  of  obtaining  efficient  employees  may  be  recom- 
mended. Advertisements  in  ISTew  York  dailies  setting  forth  the 
requirements  will  usually  bring  many  answers.  The  salaries  of 
the  managers  of  foreign  departments  naturally  vary,  but  the  far- 
sighted  manufacturer  will  not  expect  much  efficiency  from  a 
Spanish-speaking  Latin  American  whose  only  recommendation  is 
a  slight  knowledge  of  the  foreign  tongue.  Because  of  the  many 
pitfalls,  the  very  highest  type  of  employee  should  be  called  upon 
to  develop  export  trade.  Such  a  position  calls  for  intelligence  and 
imagination,  and  these  as  well  as  the  other  qualities  merit  recogni- 
tion in  a  material  way. 

Cooperative  Managers. — The  possibility  of  several  manufacturers 
agreeing  to  develop  export  business  by  prorating  the  expenses  will 
be  alluded  to  later.     Such  arrangements  not  only  apply  to  the 


§2  EXPORTING  TO  LATIN"  AMERICA 

employment  of  salesmen  but  likewise  to  the  direction  of  the  Latin 
American  business  in  general.  A  manufacturer  may  find  it  advan- 
tageous, because  of  the  limited  sale  of  his  product,  to  place  his 
business  in  the  hands  of  a  cooperative  manager,  and  only  individual 
conditions  can  determine  whether  this  is  the  best  policy.  In 
any  event,  the  manufacturer  should  satisfy  himself,  as  in  the  case 
of  export  houses,  local  agents,  and  traveling  salesmen,  that  his 
business  is  being  properly  cared  for.  Under  no  circumstances 
should  the  sole  fact  of  inexpensiveness  induce  him  to  accept  the 
services  of  an  export  manager.  The  same  precautions  may  be 
urged  in  this  matter  as  in  the  case  of  other  foreign  trade  ar- 
rangements. 

Obtaining  Maximum  Efficiency. — The  business  man  must  assure 
himself  that  his  cooperative  manager,  no  matter  whether  his  salary 
is  $20.  per  month  or  $20.  per  day,  is  not  burdened  with  too  many 
representations;  that  he  is  able  to  give  full  attention  to  the  up- 
building of  his  business  in  all  territories;  that  the  local  agents 
or  traveling  men  are  properly  directed,  etc.  There  are  many 
highly  efficient  export  managers  whose  services  may  be  obtained  in 
the  manner  already  indicated.  Naturally  a  group  of  business  men 
in  allied  lines  can  more  easily  and  inexpensively  obtain  the 
services  of  a  highly  efficient  export  manager  by  cooperation,  than 
by  individually  engaging  their  own  managers. 

Careful  Superintendence  Necessary. — In  foreign  trade,  as  in 
almost  no  other  branch  of  commerce,  it  is  essential  to  take  nothing 
for  granted.  For  that  reason  the  executive  of  a  business  establish- 
ment should  himself  study  Latin  American  trade  problems  in 
order  that  he  may  intelligently  direct  the  work  of  either  his 
individual  manager  or  the  cooperative  manager.  Every  principle 
of  efficiency  makes  this  highly  essential. 

System  Indispensable. — No  matter  whether  the  organization  of 
a  foreign  department  calls  for  the  services  of  an  individual  or 
of  a  cooperative  manager,  a  definite  system  must  be  observed.  The 
head  of  the  foreign  department  must  be  kept  fully  advised  of 
all  developments  and  to  him  must  be  sent  all  letters,  instructions, 
correspondence,  etc.  One  of  the  frequent  causes  of  non-success 
in  the  development  of  Latin  American  trade  lies  in  the  failure 
definitely  to  place  responsibility,  and  in  treating  orders  from  other 
countries  in  the  same  manner  as  those  from  the  United  States. 


HOW  TO  STUDY  THE  TRADE  PROBLEM     23 

The  Importance  of  the  Sales  Force. — The  ultimate  success  of  any 
attempt  in  the  Latin  American  field  naturally  depends  upon  this 
factor.  Unless  the  merchant,  after  a  consideration  of  all  questions, 
can  determine  at  the  outset  that  a  successful  sales  force  can  be 
recruited  or  a  proper  and  efficient  method  of  effecting  sales  can  be 
found,  failure  is  inevitable,  and  no  attempt  should  be  made  at 
export  business.  Only  losses  result  from  haphazard  effort  in  Latin 
American  trade. 

Attention  to  Details  Indispensable. — Unless  all  documents  in 
connection  with  Latin  American  trade  are  carefully  prepared  and 
properly  handled,  heavy  losses  will  be  incurred.  In  Chapter  XI 
the  reasons  for  this  are  fully  explained.  A  manufacturer  who 
determines  to  solicit  export  business  must  not  overlook  this — one 
of  the  elementary  facts  making  for  success  or  failure  in  Latin 
American  business.  A  willingness  to  take  pains  and  make  a  proper 
effort  to  learn  the  requirements  of  foreign  countries  is  necessary. 

Determining  What  Can  be  Exported. — This  is  a  most  important 
question  which  must  be  determined  at  the  outset.  The  business 
man  must  ask  himself  these  questions :  If  an  effort  is  made,  are 
there  among  our  products  any  items  which  can  be  sold  for  export  ? 
If  we  make  an  effort  to  sell  them  in  Latin  America,  is  there  a 
reasonable  hope  for  success?  Are  we  definitely  sure  that  there 
is  a  possibility  of  obtaining  sufficient  orders  eventually  to  make 
the  business  profitable  ?  The  reason  for  this  is  apparent.  Articles, 
machines,  etc.,  in  daily  or  ordinary  use  in  the  United  States,  be- 
cause of  varied  conditions  would  find  no  sale  in  certain  Latin 
American  countries. 

Adaptability  of  Product. — It  frequently  happens  that  manufac- 
tures, which  have  a  wide  demand  in  certain  of  the  Latin  American 
countries,  in  others  could  not  possibly  find  a  market.  Trade  possi- 
bilities in  Latin  America  must  be  analyzed  in  the  same  manner 
as  m  the  United  States.  Such  factors  as  altitude,  latitude,  effect 
of  ocean  currents,  mountains,  etc.,  should  be  carefully  considered. 
Snow  plows  would  be  useless  in  Buenos  Aires,  the  capital  of  the 
Argentine  Republic,  but  they  are  absolutely  necessary  in  the  west- 
ern section  of  that  country  to  clear  the  railway  tracks  of  snow. 
Ice  skates  would  find  no  market  in  Guayaquil,  Ecuador,  but  in  the 
extreme  southern  portion  of  Chile — at  Punta  Arenas,  for  instance 
— the   winters  are   extremely   severe,   and   consequently   create   a 


24  EXPORTING  TO  LATIN  AMEEICA 

demand  for  these.  Men's  high-cut  boots  for  use  in  mining  camps 
can  be  sold  in  Peru,  but  would  have  no  demand  in  the  city  of 
Montevideo,  Uruguay. 

Necessity  for  Considering  Changes. — It  is  important  to  consider 
this  question  before  attempting  to  export,  as  shape,  size,  or  other 
details  may  make  it  impossible  to  do  business.  Unless  changes 
which  may  be  found  necessary  can  be  made,  it  would  be  best 
not  to  attempt  to  enter  the  market.  Frequently,  the  manufacturer, 
even  if  willing  to  adapt  himself  to  the  requirements,  is  unable  to 
market  his  goods  because  of  inability  to  readjust  his  process  of 
manufacture,  in  which  case  it  is  likewise  best  to  spend  no  money. 

The  Importance  of  Labels  and  Finish. — Where  the  shape  of  a 
package,  its  labels,  the  finish  of  an  article,  and  its  general  appear- 
ance are  deciding  factors  in  entering  a  field,  the  manufacturer 
should  seek  to  learn  in  advance  how  best  to  prepare  his  samples 
in  order  to  reduce  the  cost  of  introductory  work.  These  details  in 
the  sale  of  certain  products  are  of  even  greater  importance  than 
is  the  case  in  the  United  States. 

The  Question  of  Class  Demands. — In  estimating  the  possibilities 
for  the  sale  of  an  article  it  is  not  only  essential  to  take  into  con- 
sideration the  population  of  a  country,  but  also  the  various  classes 
of  people  from  whom  the  demand  will  come,  as  an  estimate  based 
on  population  only  may  prove  very  misleading.  This  is  because 
the  percentage  of  peasant  population  in  almost  every  country  is 
extremely  high,  with  sales  of  many  articles  restricted  to  the  upper 
classes. 

Creating  a  Demand  When  Nonexistent. — The  fact  that  there 
has  been  no  previous  business  in  certain  products  in  a  country 
should  not  deter  the  merchant  from  seriously  considering  the  sale 
of  them.  Many  of  the  articles  which  today  enjoy  the  largest 
demand  have  been  introduced  only  as  the  result  of  great  effort  and 
despite  serious  obstacles.  As  in  the  case  of  the  domestic  market, 
a  demand  for  many  manufactures  may  be  created.  The  question 
of  method  should  be  given  serious  consideration,  and  experience 
in  the  domestic  field  should  form  the  basis  of  a  campaign  in  Latin 
America.  The  intelligent  business  man,  after  he  has  carefully 
studied  the  possibilities  of  tlie  Latin  American  field,  will  be  able 
to  determine  the  best  methods  to  follow. 

Considering  Foreign  Competition. — Before  spending  a  great  deal 


HOW  TO  STUDY  THE  TRADE  PEOBLEM     25 

of  money  in  attempting  the  sale  of  a  product  in  Latin  America,  the 
manufacturer  should  seriously  consider  whether  its  sale  may  be 
restricted  by  foreign  competition.  There  are  certain  lines  of 
manufactures  on  which  the  Europeans  have  been  able  to  offer 
advantages  in  price,  quality,  or  other  features,  and  with  which 
the  American  producers  cannot  compete.  The  wise  manufacturer 
should  investigate  this  before  authorizing  the  expenditure  of  money 
which  might  be  used  to  better  purpose  elsewhere. 

How  Tariffs  Affect  Sales. — The  effect  of  tariff  is  of  extreme 
importance.  The  first  step  which  the  manufacturer  should  take 
in  considering  the  possibilities  of  exporting  his  product  is  to 
ascertain  exactly  what  duty  will  be  charged  and  to  determine 
whether  this  will  make  it  possible  to  compete  with  local  or  foreign 
houses.  In  many  instances  American  houses  have  sent  salesmen 
at  considerable  expense  on  missionary  trips  to  countries  where, 
had  they  taken  the  trouble  to  inform  themselves  in  advance,  they 
would  have  found  it  was  utterly  useless  to  attempt  business. 
The  importance  of  the  tariff  and  its  effect  upon  the  sale  of  a 
product  cannot  be  overestimated.  The  business  man  should  also 
undertake  to  ascertain  whether  his  European  competitor  enjoys 
any  advantages,  and  if  so  by  what  reason ;  whether  because  of 
packing  in  a  special  manner  in  order  to  obtain  a  more  favorable 
custom  classification,  listing  the  goods  in  a  particular  way  to  meet 
peculiar  requirements  of  customs  officials,  etc. 

The  Most  Desirable  Territory. — It  is  only  after  a  careful  analysis 
of  all  the  factors  outlined  in  the  preceding  paragraphs  that  the 
merchant  is  able  to  determine  which  field  offers  the  best  advan- 
tages. Where  one  country  seems  to  hold  forth  great  possibilities 
because  of  low  tariff  it  may  be  adversely  affected  by  peculiar  local 
conditions  or  inaccessibility,  and  the  reverse  may  be  the  case 
with  a  country  which  is  closer  to  the  place  of  production.  The 
most  minute  study  and  analysis  must  determine  the  course  which 
the  manufacturer  should  pursue.  Too  much  stress  cannot  be 
laid  upon  the  advisability  of  such  study. 

Means  of  Obtaining  Information. — The  manufacturer  who  de- 
sires to  study  the  possibilities  for  the  sale  of  his  product  in  Latin 
America  can  obtain  from  many  sources  the  necessary  information 
on  which  to  base  a  decision  as  to  the  best  methods  to  pursue. 
Below  are  outlined  some  of  the  means  of  learning  the  facts: 


26  EXPOETING  TO  LATIN  AMERICA 

1.  Branch  Offices  of  the  Department  of  Commerce.  In  the 
cities  of  New  York,  Chicago,  Boston,  New  Orleans,  San  Francisco, 
Atlanta,  St.  Louis,  Seattle,  etc.,  are  located  branch  offices  of  the 
Department  of  Commerce.^  In  charge  of  these  offices  are  repre- 
sentatives of  the  Department  who,  upon  application,  will  give  the 
information  which  may  be  on  file  regarding  the  sale  of  a  particular 
product  in  each  of  the  Latin  American  countries.  The  agents, 
upon  application,  will  write  to  the  office  at  Washington  for  such 
additional  facts  as  may  be  desired  and  will  cooperate  in  every 
possible  way  to  obtain  such  data  as  may  be  needed. 

2.  The  Department  of  Commerce,  Washington,  D.  C.  Mer- 
chants may  communicate  directly  with  the  Bureau  of  Foreign  and 
Domestic  Commerce,  Department  of  Commerce,  "Washington, 
which  will  gladly  submit  all  data  in  its  files  and  obtain  for  the 
applicant  such  information  as  it  does  not  possess.  It  is  preferable 
to  communicate  with  the  nearest  branch  office  of  the  department. 

3.  American  Consuls  in  Latin  America.  Letters  may  be  ad- 
dressed to  American  Consuls  in  Latin  America,  but  before  doing 
so,  the  merchant  should  write  the  Department  of  Commerce  at 
Washington,  as  the  information  sought  is  likely  to  be  in  the  files  of 
the  Department  and  in  that  event  considerable  time  may  be  saved. 

4.  Business  Organizations.  Membership  in  certain  commercial 
organizations  entitles  members  to  information  relative  to  trade 
conditions  in  Latin  America.  Typical  associations  of  this  char- 
acter are  the  Philadelphia  Commercial  Museum,  Philadelphia,  Pa. ; 
the  National  Association  of  Manufacturers,  New  York;  and  the 
Merchant's  Association  of  New  York.  Numerous  commercial 
clubs  and  chambers  of  commerce  in  various  cities  are  now  cooperat- 
ing with  their  members  in  this  direction. 

5.  Pan-American  Union,  Washington,  D.  C.  This  is  an  inter- 
national organization  and  siipplies  information  concerning  trade 
opportunities  and  conditions  in  the  American  republics.  The  work 
of  this  organization  is  described  in  Chapter  XXV. 

6.  Export  Trade  Journals.  As  a  feature  of  their  service  a 
number  of  the  leading  export  journals  and  trade  papers  supply 
their  advertisers  with  information  desired  relative  to  the  possi- 
bilities of  trade  extension  with  Latin  America.  The  list  of  export 
papers  is  given  in  the  Appendix. 

*For  complete  list  see  p  495. 


HOW  TO  STUDY  THE  TRADE  PROBLEM     27 

7.  Magazines  and  Newspapers.  Certain  magazines  are  now  aid- 
ing their  readers  doing  business  with  the  Southern  Republics  by 
answering  definite  requests  for  information.  A  list  of  such  pub- 
lications will  be  found  in  the  Appendix. 

«  8.  Banks  and  Financial  Institutions.  In  order  to  stimulate 
interest  in  Latin  American  trade  and  more  efficiently  serve  its 
clients  the  National  City  Bank  of  New  York,  which  is  establishing 
branches  in  the  principal  Latin  American  cities,  will  obtain  from 
its  branch  offices  information  desired  by  American  manufacturers 
relative  to  trade  opportunities  when  not  already  on  file.  Many 
important  and  exhaustive  reports  concerning  trade  conditions  in 
many  lines  are  on  file.  A  similar  service  is  offered  by  other  Amer- 
ican banks  which  are  given  the  information  by  their  own  cor- 
respondents in  Latin  America. 

9.  Export  Commission  Houses.  When  not  prevented  by  exist- 
ing arrangements  the  New  York  Export  Houses  vnll  consider 
trade  arrangements  for  representing  American  manufacturers.  If 
they  are  in  a  position  to  undertake  an  agency  they  will  discuss 
trade  conditions  and  possibilities.  The  method  of  approaching 
them  is  discussed  in  Chapter  VI. 

10.  Books,  Publications,  Reports.  Much  valuable  information 
regarding  trade  opportunities  in  Latin  America  may  be  gleaned 
from  the  books  and  publications  which  deal  with  this  subject  in 
its  numerous  phases.  A  list  of  such  publications  which  will  be 
of  great  aid  in  the  study  of  the  export  problem  will  be  found  on 
pages 

Use  of  Magazines  for  Study. — There  are  a  number  of  news- 
papers, as  well  as  magazines  and  technical  journals,  which  feature 
articles  relating  to  Latin  American  trade.  The  articles  are  usually 
written  by  recognized  authorities  and  are  important  contributions 
to  export  literature.  Among  these  publications  are  the  following: 
The  }Yorld's  V/orlc;  Modern  Methods;  System;  Printers  Ink; 
Business;  Advertising  and  Selling;  Frank  Leslie's  Magazine; 
Christian  Science  Monitor.  An  index  to  the  articles  can  generally 
be  obtained  by  addressing  the  publishers  or  by  consulting  "Poolers 
Index"  in  public  libraries. 

Export  Effort  not  Coordinated. — One  of  the  most  fruitful  sources 
of  information  for  students  of  the  export  problem  are  the  journals 
devoted  to  export  trade.     Although  the  Bureau  of  Foreign  and 


28  EXPOETING  TO  LATIN  AMERICA 

Domestic  Commerce  at  Washington  distributes  annually  many 
thousands  of  reports  and  publications  regarding  trade  opportuni- 
ties, it  takes  no  account  of  the  valuable  treatises  on  many  phases 
of  foreign  trade  problems  which  appear  in  journals  devoted  ex- 
clusively to  the  upbuilding  of  the  export  business  of  the  United 
States.  Unfortunately  for  the  reader  there  is  no  adequate 
coordination  of  the  excellent  work  being  done  by  the  various  forces 
engaged  in  the  upbuilding  of  American  trade.  These  include : 
the  United  States  Government  through  the  Bureau  of  Foreign 
and  Domestic  Commerce,  its  Consuls  and  Commercial  Attaches; 
the  Export  and  Trade  Journals;  the  work  of  individual  manufac- 
turers; Chambers  of  Commerce  and  similar  organizations  such 
as  the  Pan-American  Union,  the  Philadelphia  Commercial 
Museum,  the  National  Association  of  Manufacturers,  etc.;  institu- 
tions of  learning.  Because  of  this  lack  of  coordination,  it  is  essen- 
tial that  the  student  of  export  problems  obtain  from  the  various 
sources  their  best  contributions  to  the  general  problem. 

Export  Journals  Useful. — The  influence  of  export  journals  in  the 
development  of  American  business  abroad  has  long  been  recognized. 
Generally  speaking  the  journals  are  very  creditable  to  American 
industry  and  well  edited.  The  value  of  these  journals  to  business 
men  and  to  students  of  export  questions  is  threefold:  (1)  a 
reading  of  the  editorials  makes  for  a  broader  outlook  in  export 
matters  in  general;  (2)  a  number  of  the  magazines  publish  an 
American  supplement  which  contains  valuable  information.  There 
are  often  included  addresses,  delivered  by  experienced  exporters,  on 
many  specific  problems  relating  to  foreign  trade.  The  informa- 
tion given  by  experts  in  these  matters  is  often  invaluable;  (3) 
manufacturers  who  contemplate  advertising  campaigns  can  more 
intelligently  plan  their  own  copy  by  studying  carefully  the  ad- 
vertisements of  firms  known  to  have  been  successful  in  Latin 
American  countries,  inasmuch  as  the  advertisements  of  such  firms 
are  based  on  the  practical  experience  of  years,  and  are  invariably 
planned  with  the  Latin  American  viewpoint  in  mind;  (4)  the 
student  of  Latin  American  business  who  seeks  to  increase  his 
knowledge  of  Spanish  and  commercial  practice  will  find  in  the 
various  export  papers  and  journals  a  vast  mine  of  information. 
A  reading  of  the  articles  which  are  written  by  Latin  Americans 
\a11  prove  valuable  practice  while  a  study  and   analysis  of  the 


HOW  TO  STUDY  THE  TEADE  PEOBLEM     29 

advertisements  from  both  the  technical  and  the  advertising  view- 
points will  prove  far  more  valuable  than  much  theoretical  in- 
struction. 

Features  of  Export  Journals. — In  the  export  journals  have 
appeared  some  of  the  most  important  contributions  to  the  subject 
of  foreign  trade.  As  an  instance  may  be  cited  Export  American 
Industries,  the  official  organ  of  the  National  Association  of  Manu- 
facturers. This  journal  has  for  several  years  published  a  supple- 
ment entitled  How  to  Export,  the  editor  of  which  is  Hugh 
McJSTair  Kahler,  a  recognized  expert.  E.  G.  Dun  and  Co.  issue 
an  International  Edition  of  their  Review,  in  which  have  been 
published  many  valuable  articles  relating  to  the  trade  conditions 
in  the  United  States  and  Latin  America  and  in  other  parts  of 
the  world.  The  American  Exporter  contains  numerous  editorials 
as  well  as  important  essays  on  the  subject  of  export  trade  in  gen- 
eral. In  the  department  entitled  "News  of  Export  and  Shipping 
Circles"  are  many  instructive  articles,  while  its  domestic  supple- 
ment (which  is  not  included  in  the  paper  circulated  abroad)  also 
has  much  information  of  value.  A  publication  of  the  Philadelphia 
Commercial  Museum,  Commercial  America,  will  be  found  useful 
for  like  reasons.  The  monthly  magazine,  The  Americas,  circu- 
lated free  of  charge  by  the  National  City  Bank  of  New  York  in 
connection  with  other  foreign  trade  service,  also  contains  many 
valuable  and  practical  articles  on  export  problems  in  general. 
The  monthly  journal,  The  South  American,  is  a  well  edited  and 
interesting  paper  which  naturally  concerns  itself  with  South  Amer- 
ican trade.  Its  lessons  in  Spanish  are  a  valuable  feature.  The 
Cuba  Beview,  a  publication  of  the  Munson  Steamship  Line,  is 
devoted  almost  exclusively  to  the  interests  of  Cuba,  and  readers 
will  find  that  it  contains  a  great  deal  of  interest  relating  to  that 
island.  Another  journal  of  importance  is  the  A  Nations  Business, 
published  by  the  Chamber  of  Commerce  of  the  United  States  in 
Washington.  This  contains  numerous  important  articles  relating 
to  domestic  and  foreign  business.  Of  the  journals  published  in 
Spanish  may  be  mentioned  El  Comercio,  La  Hacienda,  El  Ex- 
porlador  Americano,  El  Indicador  Mercantil  and  El  Mercurio.  A 
reading  of  these  publications  will  prove  not  alone  of  interest  but 
of  value  to  the  student.  The  daily  paper  published  in  New  York 
under  the  title  Las  Novedades  has  a  considerable  circulation  iu 


30  EXPOKTING  TO  LATIN  AMERICA 

Latin  America  and  as  it  is  written  by  natives,  the  Spanish  is  such 
that  the  student  will  find  it  a  valuable  means  of  extending  his 
vocabulary.     (For  a  complete  list  see  page  495.) 

How  to  Obtain  Export  Journals. — Because  of  the  wide  interest 
in  export  trade  and  their  contributions  to  the  literature  of  the 
subject,  export  journals  should  be  on  file  in  all  public  libraries; 
they  should  also  be  included  in  the  libraries  of  Boards  of  Trade 
and  commercial  organizations.  Subscriptions  may  be  sent  direct 
to  the  publishers  whose  names  and  subscription  rates  may  be  found 
on  page  495. 

Latin  America  in  the  Magazines. — In  addition  to  a  study  of  the 
export  journals  and  magazines  may  be  suggested  a  systematic  read- 
ing of  numerous  important  articles  regarding  the  Latin  American 
republics  and  trade  possibilities  therein,  which  have  appeared  in 
the  magazines.  A  valuable  index  to  such  articles  and  a  resume 
of  their  contents  may  be  found  in  the  Bulletin  of  the  Pan-American 
Union,  "Washington.  The  Bulletin  may  be  obtained  by  writing 
to  the  Bureau  at  Washington  or  may  be  found  in  almost  all  public 
libraries.  A  further  list  of  articles  will  be  found  under  the 
various  headings  of  "Poole's  Index,"  which  is  in  use  in  all  public 
libraries. 

Handbooks  Issued  by  the  Government. — Still  other  sources  of 
valuable  information  are  the  publications  of  the  United  States 
Government.  The  unlimited  facilities  at  the  command  of  the 
various  departments  have  resulted  in  the  preparation  by  experts  of 
many  books  and  reports  that  are  valuable  and  useful.  These 
works  cover  almost  every  field  of  human  endeavor  and  include 
a  particularly  large  number  of  pamphlets  dealing  with  Latin 
America  both  from  the  geographical  and  the  commercial  standpoint. 
A  list  of  the  publications  which  are  almost  indispensable  to  students 
may  be  had  by  addressing  the  Superintendent  of  Documents, 
Government  Printing  Office,   Washington,   D.   C. 

How  Railways  Cooperate. — Further  assistance  in  studying  the 
opportunities  for  trade  expansion  with  Latin  America  may  be 
obtained  from  various  st)urces.  Among  these  are  the  foreign  freight 
agents  of  certain  railway  systems.  An  example  of  railway  coopera- 
tion is  that  of  the  Soutbern  Railway  and  Allied  Lines,  which  on 
April  1st,  1915,  established  the  office  of  South  American  Agent. 
The  duty  of  this  Agent  is  to  assist  merchants  and  manufacturers 


HOW  TO  STUDY  THE  TRADE  PROBLEM     3l 

to  extend  their  trade  to  Central  and  South  America  and  the  West 
Indies.  This  assistance  takes  the  form  of  information  regarding 
the  methods  of  packing  and  other  requirements;  the  preparation 
of  letters  and  circulars ;  and  specific  information  relative  to  market 
possibilities.  Simultaneously  a  campaign  is  carried  on  in  Latin 
American  markets  relative  to  the  advantages  of  shipping  products 
to  the  United  States  and  efforts  are  made  to  arrange  for  the 
extension  of  the  markets  for  such  products.  The  railway  also 
uses  its  influence  to  create  interest  in  the  study  of  Spanish  and 
Portuguese,  in  commercial  geography  and  in  the  formation  of 
foreign  or  export  departments  of  local  Chambers  of  Commerce. 
Special  attention  is  paid  to  the  Latin  American  point  of  view 
and  the  work  is  largely  of  an  educational  character.  A  monthly 
bulletin  containing  items  of  interest  and  trade  opportunities  is 
furnished  free  of  cost. 

Assistance  of  the  National  City  Bank. — Still  another  means  of 
studying  the  market  possibilities  of  the  Latin  American  countries 
is  afforded  by  large  financial  institutions  which  are  taking  advan- 
tage of  the  Federal  Reserve  law  to  establish  banks  in  various 
Latin  American  countries.  Among  the  most  prominent  banks 
engaged  in  this  work  is  the  National  City  Bank  of  New  York 
which  cooperates  with  those  interested  in  the  development  of  export 
trade  by  investigating  the  market  possibilities  in  particular  lines 
of  goods.  Upon  request  to  this  institution,  experts  in  the  countries 
where  the  bank  has  established  branches  will  be  retained  and 
reports  will  be  prepared.  The  expense  of  obtaining  such  reports 
will  be  prorated  among  the  applicants  although  the  bank  makes 
no  charge  for  its  service.  Under  this  arrangement  any  number 
of  individual  manufacturers  of  a  particular  line  of  goods  can 
obtain  information  regarding  the  possibility  for  marketing  their 
products.  The  expense,  if  borne  by  one  manufacturer,  would  be 
very  heavy,  but  if  prorated  among  several  is  comparatively 
inexpensive.  The  development  of  this  department  of  the  Bank's 
work  is  in  accordance  with  its  policy  to  assist  in  every  possible 
way  to  extend  American  trade. 

Cooperative  Effort  in  Study. — Notwithstanding  the  fact  that 
much  knowledge  may  be  gleaned  from  the  sources  outlined,  manu- 
facturers frequently  desire  to  obtain  information  at  first  hand 
by  sending  a  representative  capable  of  ascertaining:  the  iaaia  anil 


32  EXPORTING  TO  LATIN  AMERICA 

making  a  definite  report  as  to  the  sales  possibilities  of  a  particular 
product.  Occasionally  the  prospective  sales  of  a  manufacturer  in 
a  given  territory  would  not  justify  the  expense  of  a  sole  representa- 
tive, in  which  event  cooperative  effort  on  the  part  of  several 
manufacturers  may  result  in  obtaining  the  necessary  information 
at  a  much  lower  cost.  If  a  representative  is  desired  for  this  pur- 
pose, the  division  of  the  expenses  among  the  manufacturers  inter- 
ested may  be  arranged  in  the  manner  indicated  in  Chapter  III. 

Cooperation  Among  Individual  Manufacturers. — There  are  many 
instances  of  successful  cooperative  effort  in  the  study  of  market  pos- 
sibilities. One  of  these  is  that  of  the  New  England  Manufacturing 
Jewelers  and  Silversmiths  Associations  which  cooperated  with 
the  Foreign  Trade  Department  of  the  National  City  Bank  in 
Buenos  Aires.  The  bank  arranged  with  a  reliable  jeweler  for  the 
purchase  of  a  representative  collection  of  silverware,  the  expense 
thereof  being  prorated  among  individual  members.  In  addition, 
information  was  obtained  relative  to  the  importations,  the  buying 
seasons,  the  packing,  the  methods  of  payment,  etc.  Members  of 
other  trades  could  easily  cooperate  through  their  national  or  local 
organizations  in  order  to  obtain  the  necessary  data  with  which 
their  members  could  proceed  intelligently. 

Other  Assistance. — The  American  Express  also  maintains  a 
department  to  assist  business  men  to  extend  their  trade  with  Latin 
America.  It  publishes  a  bulletin,  containing  notices  of  trade 
opportunities,  etc.,  circulated  free.  Its  service  may  be  had  for 
the  asking. 

Valuable  Aids  to  an  Export  Department. — The  export  manager 
should  use  certain  books  which  will  be  found  valuable  in  soliciting 
Latin  American  business,  and  in  the  preparation  and  shipping 
of  orders  from  the  Southern  Republics.  Lists  of  such  books  are 
found  in  the  Appendix  on  pages  464-495.  ** 


CHAPTEE  III 

METHODS  OF  BUILDING  BUSINESS  WITH  LATIN  AMERICA. 
COOPEEATION  BY  MERCHANTS 

Introduction. — There  are  various  means  of  doing  business  with 
the  merchants  of  Latin  America  and  their  desirability  is  dependent 
upon  many  factors.  The  different  methods  should  be  carefully 
studied  but  when  a  policy  has  been  decided  upon  it  should  be 
strictly  adhered  to  and  the  manufacturer  should  not  allow  him- 
self to  be  swayed  from  a  course  which  careful  analysis  and  study 
has  shown  to  be  the  proper  one  to  pursue.  An  indispensable 
factor  is  a  sympathetic  attitude  toward  Latin  Americans,  and  an 
understanding  of  their  customs,  methods,  etc.  Without  such  an 
attitude  coupled  with  intelligent  systematic  effort,  success  will  be 
difficult  of  attainment. 

Expert  Advice  Desirable. — While  it  is  not  essential  that  the 
manufacturer  possess  a  personal  experience  in  the  countries  with 
which  it  is  planned  to  do  business,  it  is  highly  desirable  that  any 
efforts  made  shall  be  intelligently  directed.  To  learn  what  may 
be  the  best  sales  methods  to  pursue,  expert  advice  should  be 
solicited  from  those  who  have  had  experience  in  Latin  American 
fields  and  from  every  other  available  source. 

The  Various  Sales  Methods. — The  different  methods  of  selling 
merchandise  to  Latin  America  are  as  follows : 

1.  Traveling  Salesmen.  These  are  sent  direct  from  the  fac- 
tories to  the  particular  country  or  countries  in  which  it  is  desired 
to  do  business. 

2.  Group  Rejiresentation.  By  this  is  meant  the  sending  by  a 
number  of  manufacturers  of  one  agent  to  cover  a  particular 
territory. 

3.  General  Agents.  These  are  appointed  either  by  the  personal 
representative  of  the  manufacturer  or  by  correspondence,  and 
represent  him  in  a  country  or  a  certain  prescribed  district  or 
territory. 

33 


34  EXPORTING  TO  LATIN  AMERICA 

4.  Local  Ageyits.  These  are  appointed  either  by  the  general 
agents  of  the  manufacturer  or  by  a  traveling  representative,  or 
are  employed  by  correspondence  to  cover  a  definite  territory,  usu- 
ally of  limited  extent. 

5.  Export  Commission  Hotises.  These  are  generally  located  in 
New  York  City,  but  a  number  are  found  in  San  Francisco,  New 
Orleans,   Boston,   Philadelphia,  and   Mobile. 

6.  Direct  Correspondence.  This  afi^ords  means  of  doing  busi- 
ness of  some  extent  with  the  importers,  wholesalers,  and  retail 
merchants  and  individuals  or  corporations  in  the  Latin  American 
republics.  In  such  relations,  the  business  is  transacted  by 
correspondence. 

7.  Advertisements  in  Export  Journals.  This  affords  another 
means  of  developing  business  in  Latin  America  by  creating  pros- 
pects with  whom  correspondence  is  then  undertaken.  Business  is 
often  the  result. 

8.  European  Commission  Houses.  Another  means  of  doing  busi- 
ness with  the  Latin  American  countries  is  through  the  European 
commission  houses  of  Hamburg,  London,  Paris,  and  elsewhere, 
whose  organizations  frequently  equal,  if  not  excel,  those  of  Amer- 
ican export  houses. 

Methods  of  European  Houses. — These  companies  have  agencies 
in  the  principal  cities  of  Latin  America,  and  do  not  confine  their 
efforts  to  European  products.  Not  infrequently  they  accept  out- 
right representations  of  American  manufacturers,  and  in  other 
instances  their  agents  obtain  orders  for  American  products  which 
are  paid  for  by  the  European  office  or  its  branch  in  New  York 
City.  In  such  instances  the  shipments  are  made  direct  from  the 
factory  via  New  York,  and  the  invoices  are  paid  by  the  European 
office.  A  list  of  European  commission  houses  will  be  found  in 
the  "World's  Trade  Directory,"  Kelley's  "Directory  of  the  World" 
(see  page  503,  Appendix),  and  in  local  directories  of  Berlin,  Ham- 
burg, etc.  These  directories  may  be  bought  as  indicated  in  Chap- 
ter XVI,  or  may  be  consulted  in  the  reference  rooms  of  the 
principal  libraries  in  the  United  States.  Many  American  manu- 
facturers who  have  efficient  agents  in  New  York  City  obtain  a 
considerable  volume  of  trade  through  the  agencies  of  the  European 
export  commission  houses. 

Considering  Best  Methods. — Every  business  man  who  contem- 


METHODS  OF  BUILDING  BUSINESS  35 

plates  the  development  of  export  business  must  determine  at  the 
outset,  by  careful  study,  the  best  methods  of  developing  trade  and 
the  class  of  buyers  he  desires  to  interest.  Practically  the  entire 
success  of  his  efforts  is  based  upon  a  decision  of  these  questions, 
and  it  influences  the  character  of  his  literature  and  expenditures. 
The  advantages  and  drawbacks  of  these  methods  are  carefully 
outlined  in  the  various  chapters  in  which  these  topics  are  dis- 
cussed. The  necessity  for  such  a  careful  study  of  methods  is 
readily  apparent  when  the  vast  difference  in  the  organization  of 
large  corporations  and  small  manufacturers  is  considered.  The 
great  mercantile  or  manufacturing  institutions  supplied  witli 
an  abundance  of  capital,  highly  developed  and  specialized  organiza- 
tions, are  not  confronted  with  the  difficulties  which  beset  the 
small  dealer  who  lacks  many  of  these  advantages.  It  is  quite 
generally  conceded  that  the  greatest  volume  of  business  in  the 
future  will  be  done  by  the  smaller  houses,  and  it  is  they  who 
must  make  the  most  careful  study  before  attempting  an  export 
business  in  order  that  all  possibility  of  errors  may  be  avoided. 
Every  effort  should  be  diverted  so  to  organize  sales  plans  that 
advantage  may  be  taken  of  all  mediums — export  houses,  local 
agents,  large  importers,  general  agents,  etc. 

Conditions  in  Foreign  Countries. — Commercial  conditions  in 
Latin  America  are  somewhat  dissimilar  to  those  in  the  United 
States,  yet  the  underlying  principles  of  business  there  are  abso- 
lutely identical  with  those  here.  A  fact  of  great  importance  that 
must  be  remembered  in  studying  the  question  is  the  possible 
conflict  of  relations  between  the  importer,  the  wholesaler  or  jobber, 
and  the  retailer.  While  trade  in  the  larger  cities  is  highly  spe- 
cialized, such  is  not  the  case  in  the  smaller  communities,  and  the 
manufacturer  who  is  thinking  of  exporting  his  products  must  re- 
member that  not  infrequently  the  purchaser  of  his  article  will  be 
a  manufacturer's  representative,  also  an  importing  wholesaler  or 
jobber,  as  well  as  a  retailer.  This  makes  it  extremely  important 
to  determine  beforehand  how  these  conditions  are  to  be  dealt  with 
in  establishing  a  sales  policy  and  in  fixing  prices,  discounts,  and 
terms.  It  is  for  this  reason  also  that  the  manufacturer  must  be 
extremely  careful  in  the  distribution  of  his  literature. 

Why  the  Different  Classes  Should  be  Studied. — The  exporter 
must  not  be  astonished  at  this  variation,  as  orders  may  be  ro- 


36  EXPOETING  TO  LATIN  AMERICA 

ceived  from  the  same  town  from  wholesale  importers  who  wish  to 
distribute  only  to  the  retailer,  and  from  large  retail  establishments 
which  will  be  interested  in  buying  only  for  their  own  account. 

Importance  of  Prices  and  Quotations. — Business  in  Latin  Amer- 
ica is  greatly  aided  by  the  establishment  of  a  definite  system  of 
prices  and  discounts.  These  should  be  changed  as  rarely  as  possible, 
and  only  after  the  most  serious  consideration  should  they  be  altered 
when  once  quotations  have  been  made.  The  Latin  American 
importer  or  dealer  who  has  based  his  own  calculations  on  quota- 
tions made  to  him  will  find  it  extremely  embarrassing  to  receive 
a  notice  of  change  of  price,  inasmuch  as  he  does  business  in  re- 
mote places,  very  difficult  of  access,  which  can  be  reached  only 
with  considerable  delay  and  loss  of  time.  Quotations,  whenever 
possible,  should  be  made  c.i.f.,  which  means,  charges,  insurance, 
freight  {not  duty)  included.  Especially  is  this  of  great  importance 
where  the  item  of  freight  is  a  determining  factor  in  obtaining 
business.  Every  effort  should  be  made  by  the  manufacturer  to 
study  this  seriously,  in  order  to  avoid  being  underbid  by  foreign 
competitors.  The  freight  rate  from  the  seacoast  to  interior  towns 
should  especially  be  ascertained,  for  the  good  will  and  interest 
shown  by  the  exporter  in  so  doing  will  be  greatly  appreciated  and 
reciprocated.  The  importance  of  quoting  at  least  to  Latin  Ameri- 
can ports  cannot  be  too  strongly  emphasized. 

Various  Grades  Demanded. — One  of  the  advantages  of  the  Latin 
American  trade  field  is  the  demand  for  man}*  different  kinds  of 
merchandise.  In  innumerable  lines  the  sale  is  not  confined  to  one 
grade,  but  has  the  very  widest  variation.  This  is  especially  true 
when  one  considers  the  Latin  American  field  as  a  whole  and  the 
trade  possibilities  of  the  twenty  individual  republics.  It  is  even 
more  marked  if  consideration  is  given  solely  to  the  possibilities  of 
one  city,  such  as  Buenos  Aires,  for  example.  In  such  cities  there 
are  stores  which  sell  only  the  most  expensive  wares,  just  as  there 
are  in  Few  York,  and  there  are  other  houses  that  cater  only  to 
the  cheaper  trade.  It  is  solely  a  question  of  tlie  representative's 
making  a  proper  study  and  approaching  the  firm  that  can  use  his 
grade  of  merchandise. 

Other  Opportunities  in  Latin  America. — Sales  in  Latin  America 
can  be  made  not  only  to  the  importers  and  business  houses,  but 
there  are  also  otlier  opportunities  for  business.    Briefly,  they  are 


METHODS  OF  BUILDING  BUSINESS  37 

as  follows:  the  governments  themselves;  the  railroad  and  steam- 
ship companies;  construction  companies  engaged  in  the  building' 
of  railroads,  water  and  power  plants,  etc. ;  mining  companies ;  sugar 
mills;  individuals  or  corporations  engaged  in  commercial  enter- 
prises. 

Business  with  the  Governments. — Among  the  large  purchasers  of 
materials  and  supplies  for  national  institutions,  the  army  and  navy, 
hospitals,  etc.,  are  the  Governments  themselves.  In  certain  re- 
publics some  of  the  railroads  are  owned  and  operated  by  the  Gov- 
ernment and  the  purchases  are  made  through  the  department 
authorized  by  law  for  that  purpose;  frequently  it  is  the  Depart- 
ment of  Fomento,  which  corresponds  in  a  general  way  to  our  own 
Department  of  the  Interior.  The  methods  of  doing  business  with 
Governments  are  similar  to  those  used  in  selling  to  the  American 
Government.  While  advertisements  for  the  requirements  of  the 
several  departments  are  usually  published  in  the  official  govern- 
ment organ,  the  Dailij  Official  Gazette,  a  local  representative  must 
be  employed  if  contracts  are  desired.  The  latter  must  have  close 
personal  relations  with  government  officials,  and  a  thorough  under- 
standing of  the  requirements  for  and  means  of  obtaining  a  hear- 
ing. A  competent  representative  may  be  secured  in  the  manner 
indicated  in  Chapter  YI. 

Railroads  and  Steamship  Companies. — The  railroads  and  steam- 
ship companies  are  among  the  largest  buyers  of  American  manu- 
factures and  their  purchases  are  constantly  increasing  in  volume. 
They  are  usually  as  well  organized  as  similar  corporations  in  the 
United  States,  and  the  methods  of  doing  business  with  them  are 
practically  identical. 

Construction  Companies. — Among  the  large  buyers  of  supplies 
of  all  sorts,  especially  for  construction  work,  are  these  corpora- 
tions, many  being  under  the  direction  of  Americans,  who  naturally 
favor  American  implements  and  materials.  These,  during  the 
coming  years,  offer  vast  opportunities.  A  list  of  such  companies 
may  be  obtained  without  difficulty.     (See  Chapter  XVI.) 

Mining  Companies. — With  the  development  of  the  great  mining 
districts  in  South  America,  Central  America,  and  Mexico,  will 
come  opportunities  for  increasing  sales  of  mining  machinery,  sup- 
plies, etc.  These  institutions,  particularly  when  directed  by 
Americans,  will  favor  American  manufacturers.     Their  names  are 


38  EXPORTING  TO  LATIN  AMERICA 

to  be  found  in  directories,  and  a  large  business  can  be  done  with 
them  by  mail,  but  the  representatives  on  the  ground  will  naturally 
be  given  the  preference. 

Sugar  Mills. — One  of  the  greatest  industries  of  the  tropics  is  that 
of  raising  sugar,  and  its  conversion  into  various  products.  Great 
opportunity  is  thereby  afforded  for  the  sale  of  sugar  machinery 
and  kindred  supplies,  and  an  increasing  volume  of  this  business 
will  undoubtedly  be  done. 

Individuals  and  Corporations. — Many  of  the  most  important 
enterprises  in  Latin  America  are  being  developed  by  individuals 
or  corporations  M'hose  purchases  are  so  large  that  they  are  made 
direct  of  the  manufacturer.  This  number  will  become  increasingly 
important,  and  its  wants  should  be  carefully  studied  by  the  manu- 
facturer who  wishes  to  develop  an  export  trade.  Not  infrequently 
the  purchases  of  such  an  individual  will  far  exceed  in  value  the 
combined  imports  of  merchants  or  other  importers  in  a  given 
district. 

Cooperative  Effort. — The  difficulties  of  the  small  manufacturer 
in  export  business  have  frequently  been  alluded  to  and,  unfor- 
tunately, have  often  been  exaggerated.  Many  small  manufacturers 
have  used  all  the  means  outlined  in  the  early  paragraphs  of  this 
chapter  to  establish  themselves,  and  in  some  instances  have  found 
that  cooperation  with  other  exporters  was  the  most  effective  means 
of  winning  Latin  American  business. 

The  Principle  of  Cooperation. — The  discussion  of  many  export 
trade  policies  is  too  academic  to  be  understood  by  the  novice  in 
foreign  trade.  This  is  particularly  true  of  plans  suggested  for 
the  combinations  of  manufacturers  to  secure  Latin  American  busi- 
ness. In  no  instance  may  success  be  expected  unless  the  methods 
used  are  thoroughly  practical.  Even  cooperation,  while  possessed 
of  excellent  features,  may  prove  a  failure  unless  the  planning  is 
done  intelligently.  The  theory  underlying  cooperative  methods 
in  export  trade  is  an  excellent  one,  being  based  on  the  difficulty 
of  obtaining  proper  representatives  and  on  the  great  expense  which 
must  be  incurred  by  the  individual  manufacturer  in  attempting 
to  win  foreign  trade  by  direct  efforts. 

Sales  Organizations  Already  •  Exist. — The  results  which  are 
sought  by  groups  of  manufacturers  who  combine  for  foreign  sales 
efforts  may  often  be  achieved  by  organizations  which  already  exist. 


METHODS  OF  BUILDING  BUSINESS  39 

These  are  the  local  or  general  agencies  which  can  be  found  in 
almost  all  Latin  American  countries,  not  alone  in  the  larger 
cities  but  in  the  less  important  commercial  centers.  Such  agents 
accept  the  representation  of  several  manufacturers.  The  work 
of  these  agencies  is  practically  duplicated  when  groups  of  manu- 
facturers cooperate,  and  it  would  often  prove  more  advantageous 
for  individual  manufacturers  to  take  advantage  of  this  selling 
machinery  than  to  cooperate  with  other  manufacturers.  Only  in- 
dividual circumstances  or  conditions  can  determine  the  best  policy. 

How  Business  Men  May  Cooperate. — It  has  been  well  established 
that  for  certain  handlers  of  allied  lines,  cooperative  effort  is  the 
most  effective  means  for  obtaining  a  foothold  in  Latin  American 
trade.  When  a  group  of  such  merchants  can  be  brought  together 
on  a  thoroughly  sound  business  basis,  their  combined  efforts  often 
prove  successful. 

How  Groups  May  be  Formed. — Manufacturers  who  believe  their 
products  can  find  a  demand  in  Latin  America  may  invite  other 
firms  of  like  opinion  to  cooperate.  In  arranging  such  groups  ex- 
treme care  must  be  taken  not  alone  in  the  selection  of  the  lines 
but  also  in  the  arrangement  of  the  expense.  It  would  be  unwise 
for  manufacturers  of  hardware,  millinery,  leather,  paints,  and  hats 
to  combine.  On  the  other  hand,  cooperation  of  concerns,  all  of 
whose  products  were  sold  by  hardware  stores,  would  prove  logical. 
Such  manufacturers  might  produce  screws,  small  machinery,  tools, 
and  similar  articles.  Another  group  might  be  formed  by  the 
producers  of  ladies'  apparel,  underwear,  hosiery,  trimmings,  mil- 
linery, et  cetera.  A  third  group  might  include  the  manufacturers 
of  leather,  dressings,  findings,  and  other  articles  used  by  shoe- 
makers. Unless  the  grouping  were  carefully  done,  the  efforts  of 
the  representative  would  be  dissipated,  inasmuch  as  too  much 
time  would  be  lost  to  interest  the  principal  importers  of  these 
various  products.  On  the  other  hand,  when  the  attention  of  the 
buyer  had  been  obtained  by  the  representative  of  a  group  of  kin- 
dred manufacturers,  the  possibilities  of  sales  would  be  much 
greater. 

The  Working  Details  of  Group  Arrangements. — The  representa- 
tive of  a  group  of  manufacturers  may  be  chosen  in  any  of  the 
ways  indicated  in  Chapter  VI.  When  the  representative  has  been 
determined  upon,  the  manufacturers  should  select  from  their  num- 


40  EXPOETING  TO  LATIN  AMERICA 

ber  the  one  most  familiar  with  conditions  in  Latin  America;  to 
direct  the  movements  of  the  representative.  The  latter  requires 
the  same  cooperation,  direction,  and  guidance  that  is  extended  to 
the  manufacturers'  domestic  salesmen.  The  attitude  of  a  joint 
representative  and  the  service  rendered  by  him  should  be  identical 
with  those  of  the  salesman  in  the  domestic  field.  The  fact  that  a 
number  of  manufacturers  have  combined  will  make  it  possible  to 
engage  a  man  of  greater  ability  than  would  be  possible  in  the  case 
of  the  individual  manufacturer  and  he  can  thus  be  paid  an  ade- 
quate salary.  Only  the  most  efficient  and  capable  representatives 
should  be  sent. 

Understanding  Regarding  Expenses. — There  should  be  a  very 
distinct  understanding,  in  advance,  of  the  proportion  of  expense 
to  each  manufacturer,  and  a  definite  arrangement  for  payments. 
This  should  apply  not  only  to  the  remuneration  of  the  salesman 
and  to  his  traveling  expenses,  but  likewise  to  any  other  expenses 
incidental  to  the  operation  of  the  group.  WTien  manufacturers 
agree  to  pool  interests  in  combinations  of  this  character,  there 
is  a  likelihood  of  dissatisfaction  if  the  sales  of  one  or  more  are 
less  than  those  of  the  others,  and  this  difficulty  is  usually  antici- 
pated by  an  agreement  to  prorate  all  expenses  in  proportion  to 
the  sales  for  the  individual  manufacturers.  Even  when  such 
experiments  prove  a  failure,  the  losses  to  group  members  are 
usually  very  much  smaller  than  would  be  the  case  were  the  ex- 
periment made  by  an  individual  manufacturer. 

How  Local  Business  Organizations  May  Assist. — Business  organ- 
izations should  seek  to  lend  the  most  practical  aid  in  Latin  Ameri- 
can trade  extension.     An  example  of  such  aid  is  the  following: 

1.  Coordinating  groups  of  manufacturers. 

2.  Assisting  in  obtaining  representatives  for  such  groups. 

3.  Obtaining  data  relative  to  trade  conditions  in  Latin  America, 
on  which  to  base  the  movements  of  the  representative. 

The  rooms  of  the  business  organizations  may  be  used  for  the 
purpose  of  coordinating  groups,  and  other  valuable  service  may 
be  rendered  by.  an  intelligent  secretary.  This  may  include  the 
obtaining  and  careful  investigation  of  applicants  for  positions  as 
traveling  representatives. 

The  Formation  of  an  Export  Company. — Anotiier  means  of  estab- 
lishing a  business  by  cooperative  effort  is  the  organization  of  a 


METHODS  OF  BUILDmO  BTJSmESS  41 

stock  company  by  a  group  of  manufacturers  who  wish  to  extend 
their  foreign  trade.  The  capital  of  such  a  stock  company  may 
vary  in  proportion  to  the  requirements  of  the  market,  the  ex- 
pense incident  to  the  establishment  of  the  business,  and  the  num- 
ber of  salesmen  employed.  For  such  a  company  a  manager  or 
director  is  engaged  on  the  best  possible  terms;  a  salary  with  com- 
mission based  on  net  profits  is  preferable.  When  this  form  of 
organization  is  undertaken,  the  details  of  the  management  are  usu- 
ally left  to  the  director,  who  must  be  highly  experienced,  and 
who  confers,  as  necessity  requires,  with  the  members.  The  num- 
ber of  manufacturers  who  enter  such  combinations  should  be  re- 
stricted for  the  reasons  that  have  already  been  alluded  to,  viz., 
multiplicity  of  lines  or  the  failure  to  sell  kindred  products  may 
prove  disastrous.  Such  a  stock  company  permits  the  payment 
of  a  large  salary  to  a  competent  manager  and  the  employment  of 
thoroughly  reliable  and  experienced  salesmen.  As  time  is  usually 
required  for  the  successful  establishment  of  a  foreign  trade,  the 
wise  merchant  will  not  expect  immediate  profits.  In  the  case 
of  a  combination  of  manufacturers  the  losses  during  the  first  two 
or  three  years  will  be  smaller  than  if  individual  efforts  were 
made,  and  at  the  same  time  the  foundation  for  a  permanent  busi- 
ness is  being  laid.  It  may  even  prove  profitable,  when  such  com- 
binations are  formed,  to  devote  to  preliminary  investigation  a  part 
of  the  money  subscribed.  Transactions  with  Latin  American  mer- 
chants may  be  financed  by  such  an  organization,  the  combined 
credit  of  the  firms  who  thus  cooperate  being  used  for  the  benefit 
of  all  and  the  amount  of  actual  cash  required  being  thus 
minimized. 

Expenses  of  a  Cooperative  Organization. — The  conditions  which 
determine  the  expense  of  any  cooperative  organization  vary  greatly 
and  depend  entirely  upon  circumstances.  If  the  plans  include  the 
employment  of  a  capable  manager  or  director,  a  salary  of  at 
least  five  or  six  thousand  dollars  per  year  may  be  required.  If 
representatives  are  sent  to  establish  offices  in  the  principal  Latin 
American  capitals,  similar  salaries  should  be  paid.  It  is  of  the 
greatest  importan(;e  that  the  representative  l)e  of  a  high  typo  in 
order  that  results  may  be  in  proportion ;  competency  should  not 
!)e  sacrified  to  economy.  The  expenses  of  such  a  representative 
would  naturally  be  larger  than  in  the  United  States  because  of  the 


42  EXPOETIXG  TO  LATIN^  AMEEICA 

importance  of  social  life.  For  traveling  agents  or  assistants,  a 
salary  and  commission,  naturally  based  on  sales,  may  be  calcu- 
lated at  from  one  hundred  twenty-five  to  one  hundred  seventy-five 
dollars  monthly  for  each  man.  The  daily  expense,  as  indicated  in 
Chapter  YI,  would  average  from  ten  to  fifteen  dollars,  except  in 
the  case  of  local  agents  who  cover  a  territory  adjacent  to  a  capital 
and  whose  expenses  would  naturally  be  materially  lower.  The  cost 
of  maintaining  an  office  in  a  foreign  capital,  including  the  rent, 
stenographer,  and  incidental  expenses,  would  vary  in  relation  to 
the  character  of  the  location,  et  cetera,  but  would  be  in  the  neigh- 
borhood of  thirty-five  hundred  to  forty-five  hundred  dollars  per 
year.  These  expenses  prorated  among  a  group  of  merchants  would 
be  very  much  less  for  the  individual  than  would  be  the  case  were 
they  incurred  by  one  exporter.  In  the  latter  event  the  sales  might 
be  larger  but  the  risk  would  be  proportionately  greater. 

The  Advantages  of  a  Lawful  Price  Agreement. — One  of  the  ques- 
tions which  is  being  vigorously  agitated  is  the  combination  of 
manufacturers  for  the  purpose  of  fixing  prices  for  export.  The 
success  achieved  by  Europeans,  particularly  German  exporters,  is 
often  cited  by  American  manufacturers  who  are  at  a  disadvantage 
in  this  regard.  Were  it  possible  for  competing  dealers  in  certain 
lines  to  agree  upon  prices  at  which  their  output  could  be  sold  in 
foreign  countries  at  lower  prices  than  those  charged  in  the  United 
States,  they  would  frequently  be  able  to  outbid  European  com- 
petitors. The  investigations  of  the  Federal  Trade  Commission 
may  result  in  such  authority  being  granted.  Agreements  in  ref- 
erence to  prices,  percentage  of  output,  lower  freight  rates,  et  cetera, 
would  naturally  come  under  the  jurisdiction  of  the  Commission, 
which  would  thus  safeguard  such  practices. 

The  Importance  of  Specialties. — The  factor  of  price  in  the  sale 
of  certain  articles  to  Latin  America  is  almost  negligible,  inasmuch 
as  these  are  specialties,  the  markets  for  which  have  been  created 
by  advertising  and  by  the  intensive  work  of  the  manufacturers. 
An  analysis  of  the  exports  of  the  United  States  and  a  study  of 
advertisements  in  export  trade  and  technical  journals  reveal  the 
fact  that  a  large  percentage  of  the  American  export  trade  in  manu- 
factured products  is  due  to  the  sale  of  specialties.  Because  of  this 
fact  manufacturers  of  such  articles  would  have  little  interest  in 
(•f)mbi nations  M-]iich  seek  to  reduce  prices,  although,  on  the  other 


Methods  of  building  business  43 

hand,  the  same  producers  might  find  it  advantageous  to  market 
their  product  in  certain  countries  or  districts  through  joint 
representatives. 

Cooperation  an  Essential. — No  matter  what  may  be  the  attitude 
of  the  individual  business  man  towards  combinations,  he  will  be 
directly  interested  in  all  cooperative  efforts  to  further  the  business 
interests  of  the  United  States  in  Latin  America.  Cooperation  has 
been  found  so  valuable  in  every  field  of  activity  that  no  plan,  par- 
ticularly for  the  development  of  export  trade,  should  be  rejected 
without  thorough  investigation.  By  maintaining  an  open  mind 
and  weighing  the  advantages  and  disadvantages  of  the  various 
means  of  doing  business,  the  alert  manufacturer  will  often  dis- 
cover that  in  certain  countries  or  under  certain  conditions  plans 
suggested  may  be  adaptable  to  his  own  product. 


CHAPTER  IV 

EUEOPEAN  AND  AMERICAN  METHODS  CONTRASTED 

EUROPEAN  METHODS  IN  LATIN  AMERICA 

Introduction. — In  the  discussion  of  Latin  American  trade  and  its 
possibilities  for  the  American  merchant,  the  methods  of~  Euro- 
pean firms  are  referred  to  with  great  frequency.  It  has  often  been 
stated  that  American  business  men  find  difficulty  in  meeting  Euro- 
pean competition,  and  that  the  great  preponderance  of  manu- 
factured articles  imported  into  Latin  America  must  always  come 
from  Europe.  In  this  respect,  the  European  War  worked  a 
considerable  change,  and  it  is  recognized  that  the  opportunities  for 
the  sale  of  American  products  are  greater  than  ever  before.  Much, 
however,  can  be  learned  from  European  methods,  and  many  Ameri- 
can houses  have  already  adopted  tlie  means  which  have  made 
European  export  houses  such  an  important  factor -in  the  Latin 
American  field. 

European  Aid  to  Merchants. — Until  very  recently,  American 
export  trade  received  almost  no  support  from  the  United  States 
Government.  In  striking  contrast  should  be  mentioned  the  great 
advantages  which  the  European  manufacturers  have  enjoyed  for 
many  years  in  the  aid  of  their  national  governments.  Exporting 
having  become  a  serious  economic  necessity,  it  became  advisable 
for  the  governments  to  aid  merchants  in  every  possible  way  to 
increase  their  exports.  This  accounts  for  the  paternalistic  policy 
which  has  found  various  forms  of  expression.  Among  these  may 
be  cited  the  following:  subsidies  to  steamship  lines;  granting 
lower  railroad  rates  within  the  coimtry  itself  to  give  an  advan- 
tage to  the  exporter;  the  recognition  of  trusts  or  syndicates; 
the  intimate  cooperation  with  boards  of  trade  and  organizations 
of  manufacturers;  the  establishment  of  Chambers  of  Commerce  in 
the  Latin  American  republics;  the  appointment  of  highly  trained 
commercial  attaches;  and  the  dissemination  of  all  useful  informa- 
tion of  a  commercial  nature  to  interested  firms. 

44 


EUROPEAN  AND  AMERICAN  METHODS  45 

Aid  of  European  Associations  Unlike  American. — The  most 
notable  feature  of  European  trade  has  been  the  remarkably  rapid 
development  of  German  oversea  commerce  in  comparatively  few 
years.  A  striking  difference  between  the  German  and  American 
export  situation  is  the  lack  of  cooperative  effort  between  the  nu- 
merous German  organizations  which  exist  for  the  purpose  of 
promoting  export  trade  to  foreign  countries.  An  explanation  may 
be  found  in  the  fact  that  commercial  conditions  in  Germany  are 
very  dissimilar  to  those  in  the  United  States,  and  the  govern- 
mental aid,  in  this  as  in  other  activities,  has  been  paternalistic 
and  individual  to  a  high  degree.  This  has  found  expression  in 
the  numerous  Kartels  or  syndicates  (in  some  of  which  the  Gov- 
ernment is  directly  interested)  through  which  prices  are  fixed 
and  output  is  controlled.  In  the  matter  of  foreign  trade,  special 
concessions  have  been  granted  in  railroad  and  steamship  rates. 
The  interests  of  the  different  commercial  organizations  frequently 
conflict,  hence  the  founding  of  associations  for  the  development 
of  export  trade  in  specific  manufactures  or  in  certain  industrial 
districts. 

Some  Important  German  Export  Associations. — There  are  export 
and  commercial  associations  in  practically  every  important  manu- 
facturing community.  These  organizations  are  semiofficial  in 
character,  many  being  subsidized  by  the  state  or  provincial  gov- 
ernments. Among  the  more  important  organizations  of  this  char- 
acter have  been  the  following:  the  Association  for  Commercial 
Geography  and  the  Promotion  of  German  Interests  in  Foreign 
Countries  (Centralverein  fucr  Handelsgeographie  und  Foerderung 
Deutschcr  Intoressen  im  Auslande),  of  Berlin.  This  organiza- 
tion was  founded  in  1878  and  has  grown  in  importance  until  now 
it  has  numbered  over  fi\e  thousand  members.  Another  very  im- 
portant association  of  Berlin  has  been  the  Exporters'  League 
(Verciniguug  der  Export  Firmen  von  Berlin),  which  is  widely 
recognized  as  an  authority  on  export  matters.  Other  associations 
whose  object  is  the  furtherance  of  export  trade  are  found  in 
Bremen,  Frankfort,  Elbcrfeld,  Niirnberg,  Leipzig,  Mannheim,  and 
otlior  centers  of  trade. 

Services  of  European  Associations,. — There  have  also  been  asso- 
ciations of  the  manufaciurcrs  of  Saxony,  of  Bavaria,  of  Wiirttem- 
burg,  etc.,  whose  efforts  to  develop  an  export  trade  were  productive 


46  EXPORTING  TO  LATIN  AMERICA 

of  much  business.  Such  organizations  maintain  offices,  and,  while 
the  services  rendered  to  members  naturally  vary,  they  are,  in  the 
main,  the  following:  translations;  reports  on  trade  conditions  and 
opportunities  in  foreign  countries ;  trade  lists ;  credit  information ; 
practical  advice  for  the  solution  of  difficult  export  problems;  aid 
in  the  appointment  of  representatives;  assistance  in  the  distribu- 
tion of  catalogs,  price  lists  and  advertising  matter;  exhibition 
of  samples;  the  distribution  of  publications  devoted  to -the  gen- 
eral topic  of  export.  In  no  other  country  have  the  interests  of  the 
business  men  and  the  Government  been  as  efficiently  coordinated 
as  in  the  German  Empire.  The  work  of  numerous  trade  organi- 
zations throughout  the  United  States  is  now  similar  to  that  of 
German  export  associations,  and  the  aid  extended  American  manu- 
facturers by  the  Government  is  fast  becoming  as  efficient  and  use- 
ful as  that  of  the  German  foreign  trade  service. 

Germany's  Trade  Scientifically  Developed. — In  the  creation  of 
German  foreign  commerce,  nothing  has  been  left  to  chance.  Every 
detail  has  been  scientifically  worked  out.  At  the  expense  of  do- 
mestic traffic,  Germany  has  granted  lower  rates  on  particular  ex- 
ports in  order  to  assist  its  industries  to  meet  foreign  competition. 
Protective  tariffs  have  been,  in  effect,  against  the  producers  of 
raw  materials  which  compete  with  German  industry.  There  has 
been  a  marvelous  coordination  of  transportation  lines  to  favor  the 
development  of  export  trade  and  to  insure  the  saving  of  every  pos- 
sible cost.  There  has  also  been  a  discrimination  in  favor  of  every 
industry,  and  the  merchant  marine,  the  German  seaports,  and 
commerce  in  general. 

Study,  the  Keynote  of  Success. — Notwithstanding  the  assistance 
furnished  by  the  Governments,  the  keynote  of  European  success  in 
the  Latin  American  field,  especially  that  of  the  Germans,  has  been 
study  and  analysis  of  export  conditions,  by  individual  manufac- 
turers. Someone  has  stated  that  the  Germans  have  a  genius  for 
export  trade ;  as  genius  is  said  to  be  an  infinite  capacity  for  taking 
pains,  it  is  probably  true.  Germany's  success  in  every  field  of  en- 
deavor has  been  due  to  painstaking  effort  in  study,  investigation 
pnd  planning.  The  German  long  since  learned  the  importance  of 
thoroughly  qualifying  himself  to  supply  the  product  required, 
even  under  adverse  conditions,     'i'he  American  merchant  will  li^Q^ 

wise  find  his  results  m  direct  relation  t<»  the  effort  made, 


lEUROPEAN  AXD  AMEEICAX  METHODS  47 

European  Export  Methods  in  Latin  America. — In  the  preceding 
chapter  reference  has  been  made  to  the  work  of  the  German  manu- 
facturers in  the  creation  of  trade  with  Latin  America.  Many  of 
these  manufacturing  establishments  liave  been  in  existence  for  long 
periods  and  their  growth  has  been  a  gradual  but  steady  one.  It 
is  the  custom  of  these  concerns  to  take  into  their  employ  ambi- 
tious bright  young  men.  The  latter  have  had  a  thorough  training 
in  the  public  and  commercial  schools,  where  they  are  taught  the 
usual  branches  necessary  in  business,  but  likewise  are  given  special 
instructions  in  commerce  and  a  thorough  training  in  the  geog- 
raphy of  foreign  countries,^  the  people,  their  languages,  history, 
and  customs.  After  their  entry  into  these  houses  they  are 
equipped  with  a  knowledge  of  the  business  and  particularly  with 
full  information  regarding  the  country  to  which  they  are  eventu- 
ally to  be  sent  when  they  have  become  sufficiently  competent. 
There  they  are  placed  in  the  branch  office  of  the  company,  or,  in 
the  case  of  smaller  concerns,  they  become  its  travelers.  They 
may  hold  these  positions  for  years,  and,  from  time  to  time,  are 
sent  to  new  fields,  that  their  efficiency  may  be  increased.  In 
many  instances  they  finally  return  to  their  native  countries  to 
assume  important  executive  positions  with  their  firms,  or  estab- 
lish themselves  on  their  own  account. 

European  Commission  Houses. — A  considerable  volume  of  all 
European  business  is  transacted  through  the  commission  houses. 
These,  to  a  very  considerable  extent,  are  constituted  as  are  the 
American  export  concerns,  but  are  unlike  them  in  some  respects. 
Numerous  German  manufacturers,  especially  the  smaller  ones,  are 
accustomed  to  place  the  sale  of  their  manufactures  abroad  with 
one  individual  exporter.  It  is  he  who  equips  his  salesmen,  selects 
and  arranges  samples,  and  upon  whom  the  manufacturer  depends 
for  results.  In  such  an  arrangement  the  export  house  itself  acts 
more  in  the  nature  of  a  jobber,  placing  its  own  prices  on  the  mer- 
chandise, and  taking  its  profits  as  it  sees  fit. 

European  Method  of  Discounting. — European  manufacturers  oft- 
times  do  not  attempt  to  deal  direct  with  the  Latin  American  im- 
porter. As  in  the  United  States,  they  make  arrangements  for  the 
sale  of  their  products  through  export  firms  whose  relations  to 
them  are  precisely  like  those  existing  between  an  export  commis- 
sion house  in  the  United  States  and  similar  American  manufac- 


48  EXPORTIXG  TO  LATIX  AMEEICA 

turers,  a  large  volume  of  the  German  exports  being  handled  through 
the  Hamburg  export  houses.  When  an  European  manufacturer 
or  exporter  who  ships  on  open  account  makes  a  shipment,  he 
attaches  to  the  bill  of  lading  covering  it,  a  draft  which  may  be 
drawn  at  any  number  of  days  sight,  determined  upon  in  advance. 
This  is  taken  to  a  bank,  discounted,  and  the  proceeds  placed  to 
the  manufacturer's  credit.  Naturally,  in  a  transaction  of  this 
character  the  banker  must  have  implicit  confidence  in  the  manu- 
facturer, inasmuch  as  his  contingent  liability  remains  the  same. 
He  must  also  have  a  thorough  knowledge  of  the  country  in  order 
that  he  may  have  no  fear  regarding  the  consignee.  So  highly 
developed,  however,  is  this  knowledge  that  manufacturers  find  no 
difficulty  whatever  in  financing  their  shipments.  This  method 
enables  them  to  do  business  abroad  in  a  manner  which  would 
otherwise  not  be  possible. 

How  Europeans  Finance  Export  Shipments. — One  of  the  dis- 
advantages which  has  been  urged  against  American  firms  in  the 
past  has  been  their  inability  to  finance  shipments  with  the  same 
facility  as  that  shown  by  European  exporters.  While  a  number 
of  the  most  important  American  export  houses  have  had  banking 
arrangements  which  permitted  them  to  discount  their  drafts  on 
their  correspondents  in  Latin  America  with  New  York  or  Euro- 
pean banks,  the  custom  of  financing  shipments  to  Latin  America 
by  discounting  drafts  has  not  become  general,  particularly  among 
the  smaller  manufacturers  and  those  exporters  who  have  made 
shipments  on  open  accounts.  An  increasingly  large  number  of 
shippers  will  undoubtedly  avail  themselves  of  the  privileges  of 
the  new  Federal  Reserve  Banking  Law,  although  the  latter  still 
requires  certain  amendments  if  the  fullest  benefits  are  to  be  re- 
alized by  the  shippers.  This  subject  is  fully  treated  in  Chapter 
XTTT. 

Development  of  Trade  Experts. — A  natural  result  of  the  develop- 
ment of  the  export  business  was  the  education  of  a  large  body  of 
men  highly  trained  in  its  requirements.  These  experts  are  asso- 
ciated with  banks  and  financial  institutions,  with  the  result  that 
the  bankers  themselves  have  as  thorough  a  knowledge  of  condi- 
tions prevailing  in  each  of  the  countries  as  the  individual  shipper. 
In  its  aid  to  the  exporters  the  Government  has  always  had  in 
mind  the  interests  of  the  smaller  merchant,  and  by  its  system  of 


EUEOPEAN  AND  AMEEICAX  METHODS  49 

financial  help  has  made  it  possible  for  the  less  powerful  manu- 
facturer to  develop  business  which  otherwise  would  have  been 
impossible. 

The  Question  of  Foreign  Competition. — One  of  the  questions  that 
most  frequently  arises  in  considering  trade  extension  to  Latin 
America  is  the  matter  of  foreign  competition.  There  has  long 
prevailed  an  idea  that  certain  European  countries,  because  of 
cheap  labor,  are  enabled  to  undersell  the  Americans,  and  that 
the  development  of  a  market  for  similar  products  of  the  United 
States  is  therefore  impossible.  Investigation  will  prove  that  this 
conclusion,  as  a  general  fact,  is  fallacious.  The  Latin  American 
merchant  is  one  of  the  most  efficient  in  the  world  and,  because 
of  the  necessity  for  considering  complex  tariff  schedules  and  fluc- 
tuations in  currency,  is  accustomed  to  make  very  close  calculations. 
He  is  an  excellent  judge  of  quality  and  thoroughly  competent  to 
appreciate  the  difference  between  low  cost  and  quality  and  a  higher 
cost  with  corresponding  quality.  The  judgment  of  the  ultimate 
consumer  is  another  factor  to  reckon  with  and  if  the  superiority 
or  desirability  of  an  article  is  demonstrated  he  is  quick  to  realize 
that  fact  and  willing  to  pay  in  accordance  with  that  standard.  As 
a  specific  instance  may  be  cited  the  sale  of  a  certain  American 
machete  which  has  become  famous  throughout  Latin  America. 
Its  imitation  has  frequently  been  attempted  by  European  cutleiy 
manufacturers  but  without  success.  The  imitation  has  often  been 
placed  in  stock  by  dealers  who  have  sought  to  make  a  larger  profit 
than  was  afforded  by  the  American  article,  but  they  were  com- 
pelled to  abandon  the  sale  when  the  natives  returned  the  imita- 
tion with  the  complaint  that  it  was  far  inferior  to  the  one  they 
had  been  accustomed  to  use.  This  is  the  supreme  test  in  Latin 
America  as  in  other  markets,  and  the  alert,  efficient  representative 
who  knows  his  product  thoroughly  will  have  absolutely  no  difficulty 
in  overcoming  the  prejudices  of  the  average  dealer  in  the  matter 
of  price. 

European  Commerce  Benefited  by  Emigration. — European  mer- 
chants have  enjoyed  certain  advantages  over  their  American  com- 
petitors in  the  development  of  their  commerce  with  Latin  Amer- 
ica. These  advantages  have  resulted  from  the  emigration  to  the 
Latin  American  states  of  the  natives  of  Germany,  France,  Eng- 
land, and,  particularly,  Spain  and  Italy.     A  logical  result  of  this 


50  EXPORTING  TO  LATIN  AMERICA 

emigration  has  been  a  demand  for  the  products  and  manufactures 
of  their  home  countries,  which  they  prefer  to  buy  from  their  own 
exporters  because  of  the  familiarity  with  the  language,  customs, 
business  conditions,  etc.  The  Europeans  have  taken  the  fullest 
advantage  of  this  condition  and  have  sought  in  every  possible 
way  to  strengthen  their  commercial  ties  with  their  countrymen  in 
the  Latin  American  republics.  As  an  example  of  this  policy  may 
be  cited  the  case  of  Italy.  The  Italian  immigration  into  Argen- 
tina, Brazil,  Chile,  and  Uruguay  has  been  very  large.  Important 
colonies  are  found  in  many  cities,  with  newspapers,  clubs.  Cham- 
bers of  Commerce  and  banking  institutions  exclusively  Italian. 
The  Italian  Government  has  vigorously  aided  the  movement  to 
increase  the  prestige  and  power  of  her  citizens  in  the  newer 
republics,  and  her  manufacturers  have  achieved  the  most  notable 
successes  in  these  fields,  which  they  have  assiduously  cultivated. 
Judged  by  American  standards,  the  growth  of  Italian  commerce 
with  Latin  America  was  not  rapid,  although  a  steady  one.  How- 
ever, the  foundation  was  firmly  laid  and  the  methods  used  were 
as  thorough  and  careful  as  those  so  characteristic  of  the  Germans. 

American  Emigration  Desirable. — The  success  achieved  by  Euro- 
pean concerns  as  a  direct  result  of  emigration  to  Latin  America 
may  well  be  studied  by  the  North  Americans.  The  establishment  of 
American  business  houses,  Chambers  of  Commerce,  banks,  and 
agencies,  should  be  aided  by  every  possible  means.  The  location  of 
American  citizens  in  the  Latin  American  countries  will  auto- 
matically create  a  demand  for  the  products  and  manufactures  of 
the  United  States,  which  will  result  in  an  expansion  of  busi- 
ness. American  manufacturers  can  well  afford  to  study  the  de- 
velopment of  European  trade  in  Latin  America  as  a  means  to 
a  more  rapid  development  of  their  trade  with  those  countries. 
Particularly  should  they  remember  the  attitude  of  the  Europeans 
toward  foreign  commerce — a  regard  for  it  as  a  permanent  asset 
which  must  be  carefully  conserved  in  times  of  prosperity  as  well 
as  in  periods  of  dullness. 

The  Ameiican  Attitude  Toward  Export  Trade. — The  develop- 
ment of  commerce  between  the  United  States  and  the  Latin  Ameri- 
can republics  has  been  marked  by  innumerable  failures  of  otherwise 
successful  business  houses  to  obtain  a  foothold  in  that  field  of 
vast  possibilities.     The  chief  causes  of  nonsuccess  have  been  those 


EUEOPEAN  AND  AMERICAN  METHODS  51 

which  characterize  the  difference  between  European  and  American 
business  methods  in  general.  Owing  to  the  rapid  development  of 
the  resources  of  the  United  States,  American  merchants  have  not 
greatly  concerned  themselves  with  opportunities  in  foreign  coun- 
tries. Until  a  comparatively  recent  date,  scientific  management 
or  the  application  of  scientific  principles  to  commercial  practices 
have  had  but  slight  recognition.  Wasteful  methods  have  been  the 
rule  in  almost  every  field  of  manufacturing  and  business  admin- 
istration. A  lack  of  thoroughness,  an  indifference  to  detail,  and 
a  readiness  to  generalize  have  marked  the  industrial  development  of 
the  United  States. 

Many  American  Efforts  Misdirected. — As  a  natural  result  of  this 
attitude  toAvard  business  in  general,  the  same  method  marked 
the  attempts  to  obtain  trade  in  Latin  America.  Many  American 
business  men,  suddenly  impressed  with  the  need  of  obtaining 
Latin  American  trade,  have  undertaken  to  do  so  in  a  manner 
which  would  seem  both  ridiculous  and  inexcusable  to  their  Euro- 
pean competitors.  By  far  the  greater  numl^er  of  attempts  have 
been  made  during  periods  of  depression  when  it  seemed  desirable 
to  obtain  a  volume  of  trade  to  replace  lost  sales  in  the  domestic 
field.  Not  infrequently,  where  a  fair  measure  of  success  followed 
even  such  puerile  attempts,  the  field  was  abandoned  as  soon  as 
dullness  gave  way  to  prosperity  at  home,  and  the  ground  that 
had  been  gained  at  great  expense  was  again  lost. 

Need  for  Experts  Disregarded. — The  necessity  of  a  trained  or 
expert  adviser  has  likewise  been  frequently  overlooked,  and  even 
more  often  the  direction  of  the  foreign  business  has  been  attempted 
with  no  previous  experience  to  warrant  it.  A  prejudice  against 
the  employment  of  competent  managers  has  often  resulted  in  losses 
Avhich  a  more  intelligent  policy  could  have  avoided. 

American  Refusal  to  Follow  Directions. — Another  serious  fault 
of  the  American  manufacturer  has  been  his  refusal  to  comply  with 
the  simplest  directions  of  his  foreign  patrons  in  the  matter  of  pack- 
ing, the  preparation  and  sending  of  documents,  and  the  observance 
of  shipping  directions.  His  stubborn  insistence  upon  shipping 
articles  not  ordered  but  substituted  by  him  on  the  theory  that 
they  would  be  '"good  enough"  has  M^orked  incalculable  harm.  Lack 
of  appreciation  of  the  Latin  American  viewpoint  toward  adver- 
tising matter,  catalogs,  price  lists,  and  the  conduct  of  correspond'^ 


52  EXPORTING  TO  LATIN  AMERICA 

ence,  has  likewise  aroused  great  dissatisfaction.  Perhaps  the 
greatest  contrast  between  European  and  American  business  prac- 
tices may  be  found  in  the  attitude  towards  sales  methods.  The 
average  American  manufacturer  who  has  undertaken  to  gain 
Latin  American  trade  has  considered  only  first  cost. 

European  Manufacturers'  Study  and  Training. — The  European 
business  man,  often  after  a  long  period  of  study  and  preparation, 
sends  a  representative  (who  has  had  a  technical  training  and  speaks 
the  languages  of  the  countries  he  is  to  visit)  on  what  is  practically 
a  missionary  or  introductory  tour,  contenting  himself  with  the 
knowledge  that  the  eventual  results  will  justify  the  expense  of 
the  first  trip,  which  he  considers  an  investment.  The  informa- 
tion which  is  gleaned  by  the  representative  and  the  connections 
made  are  turned  to  good  account  in  later  years. 

American  Salesmen  Lack  Preparation. — In  sharp  contrast  are 
the  methods  of  the  American  merchant  who,  without  previous 
study,  sends  a  traveling  agent  to  countries  of  whose  business 
conditions  he  knows  absolutely  nothing,  and  expects  the  repre- 
sentative's first  trip  to  be  highly  profitable.  In  numerous  in- 
stances the  salesman  speaks  only  English  and  is  unwilling  to  adapt 
himself  to  the  business  customs  and  manners  of  the  Latin  Amer- 
ican merchant. 

European  and  American  Methods  Contrasted. — The  European 
method  may  be  epitomized  as  follows :  patient  study  and  analysis ; 
adaptation  of  sales  methods  to  the  desires  of  the  people  and 
necessities  of  the  situation;  thoroughness  in  every  detail;  and 
absolute  cooperation.  All  this  is  in  striking  contrast  to  practices 
which  have  until  recently  marked  most  American  efforts  for  trade 
expansion.  The  success  achieved  by  the  corporations  which  have 
firmly  established  themselves  in  the  Latin  American  field  is  serving 
to  demonstrate  to  other  manufacturers  the  necessity  of  like 
methods.  Upon  the  adoption  of  this  course  depends  the  future  of 
North  American  success  in  the  Southern  trade  field. 

METHODS  OF  SUCCESSFUL  AMERICAN  CORPORATIONS  IN 
LATIN  AMERICA 

Introduction. — In  discussing  trade  opportunities  in  Latin  Amer- 
ica the  success  of  European  exporters  has  been  cited  as  evidence 


EUROPEAN  AND  AMERICAN  METHODS  53 

of  the  superiority  of  their  methods.  However,  an  analysis  of  the 
exports  of  American  houses  to  Latin  America  discloses  the  fact 
that  a  business  of  extraordinary  volume  has  been  created  there 
by  a  number  of  large  corporations  who  have  been  quite  as  suc- 
cessful in  overcoming  trade  obstacles  in  Latin  America  as  they 
have  been  in  the  home  market.  Many  of  these  manufacturers, 
with  the  determination  successfully  to  build  a  business  in  Latin 
x\merica,  made  an  exhaustive  investigation  of  trade  possibilities 
before  attempting  to  effect  sales.  Like  their  farseeing  European 
competitors  they  have  devoted  the  same  energy  in  time  of  pros- 
perity as  of  adversity,  to  their  export  as  to  their  domestic  business. 
Methods  of  Certain  American  Firms. — The  methods  used  by  the 
corporations  in  question  have  varied  in  character,  inasmuch  as 
the  conditions  under  which  they  worked  were  diverse.  In  some 
instances  the  companies  themselves  undertook  to  place  their  manu- 
factures by  direct  methods.  In  other  instances  combinations  of 
noncompeting  companies  were  formed  and  by  adhering  to  the 
same  principles  as  those  of  the  larger  manufacturers  were  able 
to  achieve  equal  success  in  proportion  to  the  effort  expended.  The 
concerns  who  formed  the  combinations  realized  that  the  possibili- 
ties for  individual  sales  did  not  justify  an  exclusive  traveling 
agent.  By  pooling  their  interests  they  were  able  to  command 
the  services  of  experienced  and  trained  men  to  act  as  traveling 
representatives  at  a  remuneration  which  was  part  salary  and  part 
commission.  These  representatives  not  only  visited  the  houses 
in  Latin  America  with  whom  selling  connections  had  been  estab- 
lished, but  likewise  called  upon  the  subagencies  and  accompanied 
the  local  or  territorial  travelers  for  the  purpose  of  keeping  them 
fully  abreast  of  changes  and  improvements,  thus  insuring  the 
highest  efficiency.  An  individual  manufacturer  in  any  of  the 
groups  would  not  have  been  Justified  in  such  an  expense,  but  as 
a  group  member  the  expenses  were  proportionately  smaller.  The 
advantages  of  group  representation  lay  not  only  in  the  economy 
of  expense  but  likewise  in  the  matter  of  price.  Particularly  was 
this  so  when  competitive  lines  were  handled  by  the  same  repre- 
sentative who  was  enabled  to  obtain  better  prices  than  would 
have  been  the  case  had  the  lines  been  handled  by  different  indi- 
viduals, both  contesting  for  the  trade.  It  was  demonstrated  by 
actual   experience   that    such    an    arrangement    was    possible    and 


54  EXPOETING  TO  LATIN  AMEEICA 

profitable,  the  cliief  reason  being  that  in  almost  all  Latin  Amer- 
ican cities  importers  are  averse  to  buying  the  brands  or  products 
used  by  a  competitor.  Where  competing  lines  have  been  sold  by 
a  competent  representative  with  a  thorough  technical  knowledge 
and  possessed  of  good  judgment,  the  results  to  all  concerned  have 
been  much  more  satisfactory  than  would  have  been  the  case  had 
individual  effort  been  made.  This  is  particularly  true  in  those 
countries  which  are  less  developed,  with  a  more  scattered  popu- 
lation, and  with  a  consequently  reduced  buying  power. 

The  Result  of  Individual  Effort. — Among  the  American  firms 
that  have  been  most  successful  in  establishing  a  permanent  trade 
in  the  Latin  American  markets  because  of  individual  effort  may  be 
cited:  the  Singer  Manufacturing  Company,  makers  of  the  Singer 
Sewing  Machine;  the  International  Harvester  Company;  the  Na- 
tional Cash  Eegister  Company;  the  U.  S.  Steel  Company;  and 
the  Standard  Oil  Company.  The  general  principles  underlying  the 
sales  efforts  of  these  corporations  were  identical  but  they  have 
constantly  sought  to  improve  their  methods  and  to  conform  to 
the  changing  conditions  in  the  different  countries.  The  efforts 
of  these  concerns  may  be  outlined  as  follows : 

1.  The  Character  of  the  Organization.  The  executives  or  di- 
rectors of  the  company  having  determined  to  establish  a  business 
upon  a  firm  basis  in  the  Latin  American  countries,  a  thorough 
study  and  analysis  of  trade  conditions  was  decided  upon.  The 
first  step  was  the  formation  of  the  organization.  This  consisted 
of  a  competent  personnel  of  technical  experts  in  the  business^ 
together  with  men  possessing  an  intimate  knowledge  of  the  trade 
conditions,  the  languages,  and  the  people  of  Latin  America.  After 
personal  visits  to  the  countries  in  which  it  was  desired  to  estab- 
lish relations,  the  results  of  the  investigation  weire  carefully 
weighed  and  a  policy  outlined. 

2.  The  Appointment  of  Agents.  As  a  result  of  correspondence 
and  visits  of  experts  representing  the  manufacturers,  general 
agents  were  named  in  the  principal  cities.  This  was  done  only 
after  a  most  careful  investigation  and  the  agents  were  selected 
because  of  their  standing  in  the  community,  their  responsibility 
and  ability.  Every  effort  was  made  to  obtain  as  agents  men  of 
affairs  whose  past  records  seemed  to  insure  their  success  with 
the  new  products. 


EUKOPEAN  AND  AMEEICAN  METHODS  55 

3.  The  Subdivision  of  Territories.  As  the  business  developed, 
and  as  conditions  warranted,  territories  were  further  divided  and 
either  subagents  or  traveling  representatives  were  named.  This 
was  done  under  the  direction  of  the  executive  in  charge  of  the 
export  business  and  in  arrangement  with  the  general  agent.  Eep- 
resentatives  were  selected  with  the  most  minute  care.  The  human 
factor,  as  an  element  in  successful  dealing  with  Latin  America, 
is  as  important  as  in  the  United  States.  The  salesmen  chosen 
were  preferably  natives  of  the  country  rather  than  Americans, 
because  it  seemed  less  difficult  to  teach  natives  the  business  than 
to  instruct  Americans  in  the  languages,  business  conditions,  and 
customs  of  the  people.  Some  of  the  corporations  most  successful 
in  Latin  x^merican  trade  hold  to  the  belief  that  an  American  can 
be  taught  only  with  the  greatest  difficulty,  and  then  in  but  excep- 
tional cases,  to  enter  fully  into  the  life  of  the  Latin  American 
people. 

4.  Instruction  of  Local  Agents.  The  matter  of  the  thorough 
instruction  of  agents,  traveling  salesmen  and  mechanics  charged 
with  overhauling  and  repairing  machines  was  undertaken  with 
the  most  rigid  exactness.  This  required  time,  executive  ability, 
and  expense,  but  well  repaid  the  effort  put  forth. 

5.  Visits  to  Home  Office  by  General  Agents.  From  time  to  time 
the  general  agents  were  brought  to  the  American  home  offices 
and  factories.  In  every  instance  possible  where  conditions  war- 
ranted the  traveling  salesmen,  foremen  in  charge  of  maintenance 
and  repairs  were  also  taken  to  the  United  States  for  additional 
instruction. 

6.  Inspection  of  Agencies  by  Executives.  In  certain  of  the  cor- 
porations the  executives  in  charge  of  the  export  business  were 
compelled  periodically  to  visit  the  general  and  subagencies  in 
order  that  they  might  be  thoroughly  in  touch  with  all  the  condi- 
tions prevailing  in  the  various  countries,  and  that,  on  the  other 
hand,  the  representatives  might  be  kept  in  close  touch  with  the 
home  office. 

7.  Analysis  of  Market  Conditions.  Market  and  local  conditions 
were  carefully  studied,  articles  were  packed  as  required,  and 
everything  that  could  possibly  be  done  to  make  the  sales  easier, 
from  the  standpoint  of  freight,  tariff,  and  other  regulations,  was 
cheerfully  complied  with. 


56  EXPORTING  TO  LATIN  AMERICA 

8.  Translation  of  Advertising  Matter.  All  advertising  matter 
was  translated  into  Portuguese  or  Spanish  by  technically  trained 
men,  natives  of  Latin  America,  with  a  thorough  knowledge  not 
only  of  the  languages  but  of  the  business.  This  also  applied  to 
advertisements  published  in  trade  papers,  export  organs,  local 
newspapers,  etc. 

9.  Liberal  Advertising  Policy.  The  value  of  advertising  and 
general  publicity  was  carefully  considered  and  provided  for  to 
the  same  extent  as  in  the  United  States. 

10.  Sales  Agreements.  Arrangements  entered  into  with  general 
or  local  agents  were  scrupulously  regarded.  Every  effort  was 
made  to  retain  the  good  will  and  enthusiasm  of  agents,  subagents 
and  salesmen. 

11.  Local  Requirements  Supplied.  The  local  trade  requirements 
were  carefully  regarded  and  an  enormous  business  established 
by  one  firm  through  branch  offices  which  sold  to  the  consumer.  In 
making  sales  on  installments  the  exact  features  of  the  American 
policy  were  adhered  to.  Another  concern  (manufacturers  of  a 
typewriter)  found  it  advantageous  to  quote  a  price  subject  to 
discount  for  their  machine  which  has  a  very  large  sale  in  this 
country  at  a  net  price.  This  course  was  adopted  because  the 
Latin  Americans  were  used  to  discounts  and  the  concession  thus 
made  encouraged  cash  payments.  The  success  achieved  by  these 
corporations  merely  demonstrates  what  intelligent  effort  will  ac- 
complish in  establishing  business  with  Latin  America. 


CHAPTEE  V 

EXPORT    COMMISSION    HOUSES    AND    EXPORT    AGENTS.      THEIR 

FUNCTIONS 

PROBLEMS  OF  EXPORT  MERCHANTS 

Introduction. — The  most  important  factor  in  the  development 
of  trade  with  the  Latin  American  republics  has  been  the  export 
commission  house.  The  exports  of  the  United  States  to  the  Latin 
■American  republics  in  1915  were  $327,307,055;  between  60  per 
cent,  and  70  per  cent,  of  this  business  was  secured  and  financed 
by  export  commission  houses,  hence  their  activities,  advantages, 
and  drawbacks  deserve  important  consideration.  The  two  chief 
reasons  why  the  export  house  has  been  such  an  important  factor 
in  the  trade  development  of  the  United  States  with  Latin  America 
are  the  following: 

1.  Because  of  its  highly  trained  organization,  many  American 
manufacturers,  through  it,  have  been  enabled  to  place  their 
products  in  the  Latin  American  countries  at  the  minimum  ex- 
pense, trouble,  and  risk.  This  has  been  so  whether  the  export 
house  sold  on  commission  or  for  its  own  account. 

2.  The  merchant  of  Latin  America  has  found  it  of  particular 
assistance  to  trade  with  the  export  house  because  of  the  credit 
facilities  thus  afforded  him.  In  the  rapidly  developing  Latin 
American  republics  there  is  a  general  shortage  of  capital;  by 
making  consignments  of  raw  products  to  the  export  house  a  basis 
for  larger  credit  is  established. 

What  an  Export  House  Is. — The  export  commission  house  serves 
as  the  agent  in  the  United  States  for  merchants  in  foreign  coun- 
tries. In  that  capacity  it  acts  as  consignee  for  the  foreign  ex- 
porter who  ships  to  it  raw  products  to  be  sold  for  his  account. 
Its  most  important  function  as  agent  is  the  placing,  with  Amer- 
ican manufacturers,  of  orders  sent  to  it  by  its  correspondents;  it 
finances  the  shipments;  that  is,  it  pays  the  manufacturers'  bills 
and  in  turn  collects  from  the  foreign  merchant;  it  attends  to  all 

57 


58  EXPORTING  TO  LATIN  AMERICA 

details  of  forwarding  the  shipments,  including  the  payment  of 
the  interior  freight,  the  transfer  to  the  ship,  the  placing  of  insur- 
ance, etc. 

Export  House  Sales  on  Own  Account. — Besides  serving  in  the 
capacities  outlined  in  the  previous  paragraph,  many  export 
houses  today  make  sales  on  their  own  account.  One  of 
the  most  interesting  developments  of  the  export  commis- 
sion house  business  has  been  this  change  in  policy.  Orig- 
inally its  activities  were  confined  strictly  to  the  execution  of 
"indents"  for  specific  products  received  from  its  agents  or  clients 
abroad.  Such  orders  were  transmitted  to  the  manufacturers 
whose  names  were  specified  in  the  "indent"  and  for  whose  account 
the  sales  were  made,  a  commission  for  the  service  being  charged 
to  the  buyer.  In  consequence  of  increasing  competition  and 
the  narrowing  margin  of  profit,  many  commission  houses  now  make 
purchases  outright  from  manufacturers,  and  the  products  are 
labeled  with  their  individual  brands  and  labels.  Stocks  are  car- 
ried in  the  principal  cities  of  Latin  America  in  order  that  deliv- 
eries may  be  made  more  promptly  and  economically.  In  this 
respect  their  methods  are  similar  to  those  of  German  and  other 
European  export  houses  who  likewise  sell  on  their  own  account 
products  and  manufactures  in  general  which  may  be  most  advan- 
tageously handled  under  such  a  system.  Despite  this  new  phase 
of  export  house  practice,  many  firms  still  confine  themselves 
strictly  to  connnission  sales. 

How  Export  Commission  Houses  Trade  with  Latin  Americans. — 
The  importer  and  exporter  in  Latin  xVmerica  is  often  the  same 
person,  and  this  may  be  said  to  apply  with  special  force  to  mer- 
chants located  in  the  more  remote  places  and  in  the  less  developed 
communities.  In  the  larger  cities,  specializing  is  more  frequent, 
and  trade  and  commerce  have  been  developed  to  the  same  higli 
degree  of  complexity  as  in  the  United  States.  In  many  places, 
particularly  seaports,  the  dealer  is  accustomed  to  ship  merchandise 
of  every  conceivable  kind  to  merchants  in  the  interior.  In  return 
he  receives  the  native  raw  products,  such  as  skins,  hides,  vegetable 
ivory,  rubber,  medicinal  plants,  etc.  These  goods  are  properly 
prepared,  packed  and  shipped  to  European  or  American  export 
houses.  The  largest  percentage  of  goods  for  the  United  States  is 
consigned  to  the  export  commission  houses  of  New  York,  where 


EXPORT  COMMISSION  HOUSES  AND  AGENTS      59 

the  bulk  of  this  business  is  done.  The  consignments  are  then 
sold  by  the  commission  houses  for  the  account  of  the  Latin 
American  correspondent,  and  the  proceeds  are  applied  to  the  credit 
of  the  consignor. 

Advajitages  of  Trading  to  Export  Commission  Houses. — It  will 
be  readily  seen  that  trading  gives  the  export  commission  house 
peculiar  advantages  over  the  manufacturer  who  cannot  handle 
the  consignments  of  Latin  American  dealers.  By  reason  of  the 
consignments,  the  export  house  enjoys  a  tremendous  advantage  in 
the  extending  of  credit.  This  is  a  point  which  the  export  house 
emphasizes  when  seeking  new  trade  relations  with  Latin  American 
importers.  It  is  also  perhaps  the  greatest  drawback  to  the  up- 
l)uilding  of  direct  trade  relations  by  the  American  manufacturer. 

How  Export  Commission  Houses  Have  Increased  the  Trade  with 
Latin  America. — Not  only  because  of  its  facility  for  handling  the 
products  of  Latin  America,  but  because  of  its  machinery  for  selling 
American  manufactured  products,  is  the  export  house  so  great 
a  factor  in  the  Latin  American  trade.  While  direct  relations  be- 
tween the  American  manufacturers  and  the  Latin  American  mer- 
chant are  very  desirable,  this  is  in  many  instances  practically 
impossible.  A  great  many  manufacturers  are  either  unwilling  to 
expend  money  and  time  in  pioneer  work  indispensable  to  export 
success,  or  the  nature  of  their  goods  is  such  that  they  cannot  pos- 
sibly undertake  direct  export  business.  For  such  concerns  the 
export  commission  house  affords  the  best  medium  for  making  sales 
to  Latin  America.  Although  there  are  some  products  that  cannot 
possibly  be  marketed  through  the  export  houses  because  of  tech- 
nical considerations,  there  are  but  few  for  which  a  properly  con- 
ducted export  house  cannot  find  an  adequate  sale. 

The  Natural  Field  of  Export  Commission  Houses. — The  export 
commission  house  in  almost  every  form  is  represented  in  prac- 
tically all  important  places  in  Latin  America.  Some  concerns  limit 
their  activities  to  certain  zones  or  districts  in  one  country;  others 
cover  cities  in  all  the  republics;  while  still  others — especially  those 
in  process  of  development — confine  their  activities  to  but  one  or 
more  countries.  The  representation  of  an  export  house  is  largely 
dependent  upon  obtaining  the  services  of  experts  and  the  chief 
difficulty  is  to  obtain  competent  experienced  men  in  Latin  America 
as  well  as  in  tho  United  States.     The  countries  in  which  the 


60  EXPOETING  TO  LATIN  AMERICA 

export  commission  house  has  assumed  the  greatest  importance 
and  is  the  most  vital  factor  is  in  those  republics  (particularly  the 
less  developed  ones)  where  business  has  not  yet  assumed  great 
complexity.  Chief  among  these  are  the  republics  of  Central  Amer- 
ica, the  United  States  of  Colombia,  Ecuador,  Peru,  and  Bolivia. 
Notwithstanding  this  fact,  branch  offices  or  correspondents  of  the 
New  York  houses  are  found  scattered  throughout  every  Latin 
American   country. 

The  Location  of  the  Export  Houses. — As  is  quite  natural,  the 
export  commission  houses  flourish  in  seaboard  cities.  As  the  great 
bulk  of  export  business  flows  through  the  port  of  New  York,  by 
far  the  largest  number  of  such  houses  are  located  in  that  city. 
However,  there  are  a  number  of  establishments  of  the  same  kind 
in  San  Francisco,  but  most  of  their  business  is  with  the  West 
Coast  cities  of  South  America.  Export  commission  houses  who 
deal  almost  exclusively  with  the  republics  of  Central  America  are 
found  in  New  Orleans  and  Mobile.  Other  export  houses  are  located 
in  Baltimore  and  Boston,  and  in  very  limited  numbers  in  interior 
cities,  such  as  Chicago  and  St.  Louis. 

Organization  of  the  Export  Commission  House. — The  character 
of  the  business  transacted  by  the  export  commission  house  re- 
quires a  competent  organization,  and  this  varies  in  direct  ratio 
to  the  volume  of  business  transacted.  It  ranges  from  a  very 
small  number  of  clerks,  in  the  case  of  the  less  important  houses, 
to  an  army  of  highly  trained  employees  in  those  firms  which 
maintain  branch  offices,  traveling  agents,  and  correspondents  in 
almost  every  city  of  Latin  America.  Eoughly,  the  organization 
may  be  divided  as  follows: 

1.  The  New  Yorh  Office.  This  includes  the  manager,  assistant 
to  manager  and  clerks. 

2.  Branch  Offices  in  Principal  Latin  American  Cities.  These 
are  in  charge  of  men  whose  knowledge  has  been  acquired  in  the 
conduct  of  the  business,  who  are  assisted  by  a  staff  of  salesmen 
and  clerks. 

3.  Traveling  Agents.  Frequently  traveling  agents  are  sent  di- 
rect from  the  New  York  offices  to  territories  where  no  branches 
have  been  established,  for  the  purpose  of  soliciting  orders  and 
consignments,  and  visiting  correspondents. 

4.  Local  Salesmen.     These  are  usually  attached  to  the  branch 


EXPORT  COMMISSION  HOUSES  AND  AGENTS      61 

offices  under  whose  guidance  and  direction  they  work.  In  some 
instances  they  are  directed  from  the  New  York  office. 

5.  Local  Sales  Agents.  These  are  usually  located  in  the  more 
remote  places  where  they  act  in  the  interests  of  the  New  York 
house  and  under  its  direct  guidance  or  that  of  the  nearest  branch 
office. 

The  Highly  Developed  Export  Coinniission  House :  Its  Functions. 
The  development  of  trade  relations  with  Latin  America  has  been 
marked  by  the  growth  of  many  export  concerns,  whose  business 
has  increased  from  year  to  year,  and  who,  from  small,  insignificant 
organizations  engaged  merely  in  trading,  have  become  highly  com- 
plex mercantile  machines.  The  development  of  their  business  has 
made  it  necessary  for  them  to  add,  from  time  to  time,  new  depart- 
ments and  to  assume  additional  functions.  One  of  the  largest 
and  most  successful  export  commission  houses  in  New  York  today 
concerns  itself  with  the  following  activities: 

1.  Consignee  for  Latin  American  Shippers.  It  acts  as  the 
selling  agent  for  the  products  consigned  to  it  by  Latin  American 
dealers. 

2.  Represents  American  Manufacturers.  Through  the  traveling 
and  local  agents  attached  to  its  branch  offices  it  undertakes  repre- 
sentation of  American  manufacturers  for  the  sale  of  their  products. 

3.  Operates  Sailing  Vessels  and  Steamship  Lines.  It  conducts 
a  general  freight  and  passenger  business  with  various  Latin  Amer- 
ican republics. 

4.  Banking  and  Foreign  Exchange.  It  carries  on  a  general 
banking  business  and  buys  and  sells  foreign  exchange. 

5.  Fiscal  Agent  for  Latin  American  Governmerits.  In  this 
capacity  it  handles  important  financial  matters  for  the  Latin  Amer- 
ican republics  which  it  represents. 

Why  Export  Commission  Houses  Maintain  Staffs  of  Experts. — • 
In  order  to  transact  business  successfully  in  Latin  America,  a 
minute  knowledge  of  the  country,  the  people,  and  the  requirements 
of  trade,  is  indispensable.  This  knowledge  can  only  be  acquired 
by  years  of  study  and  actual  experience.  The  American  commis- 
sion house  handles  such  a  great  variety  of  merchandise  that  it 
is  necessary  to  have  experts  with  a  thorough  knowledge  of  condi- 
tions, not  only  in  one  country,  but  in  every  republic  where  it  does 
business.     The  conditions  for  the  sale  of  a  given  article,  as  a 


63  EXPOETING  TO  LATIN  AMERICA 

rule,  are  very  dissimilar  in  each  of  the  Latin  American  republics, 
and  it  is  natural  that  only  concerns  who  transact  a  large  business 
can  afford  to  employ  experts  whose  remuneration  is  based  on  their 
knowledge  or  experience.  The  information  that  can  be  obtained 
from  these  experts  is  of  the  widest  range,  covering  not  only  Amer- 
ican and  European  competition  but  such  details  as  the  most  suit- 
able patterns,  the  proper  methods  for  making  sales,  correct  pack- 
ing, shipping  details,  and  all  essentials  for  the  selling  of  mer- 
chandise. The  manufacturer  seeking  to  extend  his  business  to 
Latin  America  will  find  the  advice  and  counsel  of  trained  experts 
most  valuable  in  the  matter  of  distribution  of  catalogs,  the  ap- 
pointment of  agents,  and,  above  all,  the  best  fields  for  work. 

How  Export  Commission  Houses  Handle  Finances. — In  transact- 
ing its  business  with  Latin  America  a  considerable  amount  of 
capital  is  required  by  the  export  commission  house.  This  is  par- 
ticularly due  to  the  fact  that  the  large  credits  required  by  the 
Latin  American  importers  make  heavy  demands  on  the  export 
house.  When  it  ships  goods,  it  makes  a  draft,  the  time  for  pay- 
ment of  which  varies  from  thirty  to  one  hundred  and  twenty  days 
after  sight.  To  obtain  money  for  the  payment  of  the  American 
manufacturer,  it  is  obliged  to  tie  up  in  banks,  as  a  margin,  an 
extremely  large  amount,  its  contingent  liability  being  always  for 
the  amount  of  its  entire  transactions  until  they  are  completed,  this 
requiring  five  or  six  months.  If  a  commission  house  does  a  busi- 
ness of  $200,000.  per  month,  its  liabilities  M'ill  be  at  least  $950,000. 
to  $1,250,000.  A  great  advantage  will  be  afforded  responsible 
American  export  houses  by  the  new  currency  law,  permitting  the 
rcdiscounting  of  prime  commercial  pajier,  so  that  it  will  henceforth 
be  able  more  easily  to  place  a  larger  percentage  of  its  transac- 
tions on  a  cash  basis.  To  a  very  considerable  extent,  this  will 
equalize  the  advantages  heretofore  enjoyed  by  European  exporters, 
as  European  banks  have  been  willing  to  offer  unusual  aid  to  the 
exporter,  his  paper  being  discounted  very  freely.  This  is  largely 
due  to  the  fact  that  in  Europe  tlie  financiers  liave  been  more 
familiar  with  conditions  prevailing  in  foreign  countries,  and  find 
it  to  their  decided  advantage  to  encourage  tbe  exporters.  Their 
risk,  in  reality,  has  been  very  small  for  the  reason  that  shipments 
have  been  made  to  a  great  numl)er  of  dealers  in  widely  scattered 
places.     A  point  that  must  not  be  overlooked  in  connection  with 


EXPORT  COMMISSION  HOUSES  AXD  AGENTS      63 

financing  shipments  to  Latin  America  is  that  the  American  export 
commission  house,  in  addition  to  assuming  the  payment  of  the 
bills  of  the  American  manufacturers,  must  also  advance  the  money 
for  handling  the  freight,  cartage,  lighterage,  and  for  the  prepay- 
ment of  ocean  freight.  Naturally  where  a  large  business  is  trans- 
acted, this  becomes  a  very  important  item. 

How  Export  Commission  Houses  Serve  American  Manufacturers. 
— When  the  American  manufacturer  is  represented  by  an  export 
commission  house,  he  is  relieved  of  all  the  petty  details  in  connec- 
tion with  the  forwarding  of  goods  from  New  York,  their  proper 
routing  and  shipping.  It  is  unnecessary  for  him  to  make  an 
investigation  of  the  credit  of  the  Latin  American  dealers  or  a 
study  of  packing  and  custom  house  requirements,  such  details 
being  furnished  by  the  export  house  with  the  order.  He  receives 
cash  in  paj'ment  of  his  goods  practically  within  ten  days  or  two 
weeks  from  the  time  of  shipment,  and  the  entire  transaction  re- 
quires less  care  and  thought  than  the  handling  of  an  order  from 
customers  in  the  United  States.  By  reason  of  the  volume  of 
business  done  by  the  export  commission  house,  the  manufacturer 
may  feel  assured  that  his  goods  reach  his  customer  more  eco- 
nomically than  if  he  shipped  them  direct  on  individual  bills  of 
lading.  AVlien  the  export  house  places  many  articles  on  one 
steamship  manifest,  the  charges  for  handling  are  subdivided  and 
as  a  rule  the  expense  attached  to  individual  lots  is  thus  very 
much  reduced.  It  is  reasonable  to  assume  that  for  this  reason 
alone    export   commission   houses   will    always   be   needed. 

Marketing  Goods  Through  Export  Commission  Houses. — When 
the  manufacturer  has  determined  that  it  is  to  his  best  interest 
to  sell  his  goods  in  Latin  America  through  export  commission 
houses  the  following  method  may  be  adopted : 

1.  A  list  of  the  export  firms  located  in  New  York,  New  Orleans, 
or  San  Francisco,  should  be  obtained.  They  are  found  in  the 
City  Directories,  which  may  be  consulted  in  almost  any  public 
library  or  directory  publishing  house,  while  there  are  also  specially 
compiled  lists  furnished  by  concerns  whose  business  it  is  to  sell 
them. 

Other  Sources  of  Names.  A  valuable  publication  which  is 
issued  annually  is  the  "Export  Trade  Directory,"  one  of 
the    best    means    of    obtaining    accurate    information    concern- 


64  EXPORTING  TO  LATIN  AMERICA 

ing  the  export  commission  houses  and  their  fields.  In  this  di- 
rectory there  appears  a  sketch  of  the  principal  export  houses 
with  an  outline  of  the  countries  in  which  they  do  business,  to- 
gether with  a  list  of  merchandise  in  which  they  specialize.  It  is 
described  on  page  464.  Another  authoritative  publication  is  the 
"Exporters'  Encyclopedia."  In  this  book  are  given  shipping  routes, 
directions  for  preparation  of  documents,  etc.  At  the  beginning 
of  each  chapter  there  is  given  a  list  of  the  principal  export  houses 
which  trade  with  that  country  and  although  not  complete  it  is 
nevertheless  valuable.  This  volume  is  on  file  in  the  principal 
public  libraries.    It  is  also  listed  on  page  464. 

2.  The  manufacturer  must  consider  which  house  affords  the 
greatest  advantages.  He  must  endeavor  to  ascertain  which  con- 
cern can  best  serve  his  purposes;  that  is,  whether  only  one  organi- 
zation can  most  efficiently  care  for  his  interests  in  all  the  countries 
or  whether  it  would  be  better  to  cover  one  field  through  a  certain 
house  and  other  fields  by  still  different  concerns.  The  financial 
responsibility  of  the  houses  should  be  carefully  considered,  and 
the  mercantile  agencies  should  be  consulted  in  advance  for  their 
ratings. 

3.  For  the  purpose  of  determining  how  the  mutual  interests 
of  the  manufacturer  and  the  Commission  House  can  best  be  served, 
letters  should  be  written  by  the  manufacturer  to  the  firms  deter- 
mined upon  and  full  details  given  regarding  the  following  par- 
ticulars : 

(a)  The  goods  which  it  is  desired  to  export. 

(b)  Their  points  of  superiority  should  be  emphasized. 

(c)  Adaptability  to  Latin  American  markets  should  be  dem- 
onstrated. 

(d)  Qualifications  of  the  manufacturer  to  handle  export  busi- 
ness should  be  shown. 

(e)  Willingness  to  attend  to  necessary  details  should  be  in- 
dicated. 

(f)  Catalogs,  price  lists,  and  printed  matter  should  be  mailed. 

(g)  Terms,  discounts,  and  commissions  should  be  specified, 
(h)   Territory  to  be  covered  should  be  outlined. 

(i)  The  export  house  should  be  requested  to  give  full  details 
of  its  organization  and  its  means  for  most  effectively  marketing 
the  product  in  the  given  territory. 


EXPORT  COMMISSION  HOUSES  AND  AGENTS     65 

Need  for  Thorough  Understandings. — For  the  best  mutual  inter- 
ests of  the  manufacturer  and  the  export  commission  house,  there 
should  be  a  thorough  understanding  on  the  following  points  which 
may  be  considered  the  basis  of  successful  relations  between  the 
manufacturer  and  export  house: 

1.  Agreement  Regarding  Time.  The  time  to  be  allowed  for  the 
development  of  the  business  in  a  given  territory  should  be  specified. 
This  is  essential  because  of  the  varying  conditions  in  the  several 
republics.  To  develop  properly  a  certain  field  requires  a  much 
longer  time  in  one  country  than  in  another. 

2.  Understanding  Regarding  Field.  There  should  be  a  distinct 
understanding  relative  to  the  field  or  territory  to  be  worked.  It  is 
very  unwise  for  the  manufacturer  to  grant  selling  rights  without 
specifying  exactly  what  countries  or  cities  are  to  be  included  in 
the  territory.  Latin  America  is  so  large  that  any  manufacturer 
who  wishes  to  make  a  consistent  and  logical  effort  permanently  to 
establish  a  market  for  his  goods  must  be  specific  and  dare  not 
deal  in  generalities.     This  cannot  be  too  strongly  emphasized. 

3.  Methods  of  Marketing  Must  Be  Determined.  The  exact  meth- 
ods by  which  it  is  proposed  to  market  the  goods  must  be  determined 
beforehand.  The  wise  manufacturer  will  not  leave  to  chance  or 
to  the  mercies  of  an  unsympathetic  agent  or  correspondent  the 
method  to  be  followed  in  establishing  a  market  for  his  product.  It 
is  of  the  utmost  importance  that  the  experience  he  has  gained 
in  the  domestic  field  be  turned  into  best  account  in  entering  the 
Latin  American  territory.  The  easier  the  path  can  be  made  for 
the  representative,  especially  one  unacquainted  with  the  merits  or 
peculiarities  of  the  new  line,  the  greater  will  be  the  sales,  and 
the  shorter  the  time  required  for  its  introduction.  The  repre- 
sentative of  a  responsible  export  house  in  Peru  may  achieve  an 
extraordinary  success  with  a  given  article  while  the  agent  of  the 
same  house  in  Chile  may  meet  with  complete  failure.  It  is,  there- 
fore, of  prime  importance  that  the  American  manufacturer  safe- 
guard his  representation  most  carefully  and  thus  avoid  pitfalls. 

4.  Agreement  Regarding  Cooperative  \Yorh.  The  kind  of  cooper- 
ative work  between  export  house,  importer,  and  manufacturer, 
should  be  decided  upon.  The  wise  manufacturer  will  encourage 
his  export  house  connection,  and  in  turn  the  latter's  agents,  in 
every  possible  way,  by  intensive  cooperative  work  with  the  dealer. 


66  EXPOETIXG  TO  LATTX  AMEEICA 

This  should  take  the  form  of  devehiping  prospects,  of  "following 
iip''  former  buyers,  and  of  obtaining  additional  orders  from  initial 
sales  effected  by  the  agent.  This  cooperative  work  should  stimu- 
late the  agent  to  greatest  activity  and  there  should  be  no  mis- 
understanding in  regard  to  it  after  the  business  has  begun. 

5.  Understanding  Regarding  Other  Sales  Methods.  It  should 
be  determined  whether  the  American  manufacturer  will  solicit 
business  direct  in  addition  to  his  efforts  through  the  export  house. 
Many  previous  efforts  to  enter  the  Latin  American  field  have 
foundered  on  this  rock.  Here  again  must  the  principle  of  coopera- 
tion be  emphasized  in  advocating  the  development  of  "leads"  or 
prospects  for  local  agents  to  whom  these  are  turned  over.  This 
policy  will  result  in  an  infinitely  greater  volume  of  business  if 
the  manufacturers'  efforts  are  directed  towards  supplementing 
those  of  the  export  house. 

Results  That  May  be  Expected. — The  representation  of  his 
product  having  been  granted  an  export  house,  the  manufacturer 
can  only  await  results.  The  success  with  which  the  export  house 
meets  in  placing  goods  in  Latin  American  countries  is  naturally 
dependent  upon  the  same  principles  that  govern  the  sale  of  mer- 
chandise in  the  United  States;  their  adaptability  to  the  market, 
the  ability  to  excel  competitive  lines  or  brands,  the  activity  of 
agents,  all  are  factors  to  be  reckoned  with.  No  manufacturer  can 
reasonably  expect  an  immediate  return,  nor,  if  the  line  is  intro- 
duced simultaneously  in  all  of  the  republics,  can  he  expect 
equally  good  results  from  all.  Local  conditions  differ  so  widely 
and  there  are  so  many  factors  that  must  be  taken  into  considera- 
tion that  the  manufacturer  must  not  be  disappointed  at  a  wide 
variance    in    results. 

Failure  Frequently  Due  to  Multiplicity  of  Representations. — In 
their  eagerness  to  do  a  large  volume  of  business,  many  export 
houses  frequently  accept  the  agency  for  too  many  lines.  This  can 
have  but  one  result.  If  the  branch  office,  the  local  agent,  or  the 
correspondent  of  the  export  house  is  expected  to  scatter  limited 
energies  over  too  wide  a  field,  it  is  certain  that  a  keen  disappoint- 
ment awaits  the  manufacturer  who  believes  that  his  interests  are 
being  properly  cared  for.  In  making  arrangements  with  export 
houses,  the  manufacturer  should  have  a  very  clear  notion  of  the 
amount  of  time,  energy,  and  thought  that  will  be  given  to  the 


EXPORT  COMMISSION  HOUSES  AND  AGENTS      G7 

sale  of  his  product.  In  the  many  instances  where  failure  properly 
to  introduce  desirable  goods  in  fertile  fields  was  due  to  this  cause, 
the  manufacturers  would  have  served  their  interests  much  better 
had  they  assured  themselves  beforehand  that  due  attention  would 
be  given  their  products.  It  would  have  been  infinitely  better  had 
they  analyzed  very  critically  their  sales  opportunities,  and  placed 
their  representation,  if  necessary,  with  a  different  export  house 
for  every  country.  The  fact  that  a  certain  export  house  is  un- 
usually successful  in  Peru  does  not  prove  that  it  will  be  equally 
so  in  Bolivia  or  the  Argentine.  The  representative  in  the  latter 
republic,  by  reason  of  his  technical  experience,  may  be  much 
.better  qualified  to  sell  cotton  goods  than  machinery,  and  it  is  the 
duty  of  the  manufacturer  to  ascertain  that  fact  before  it  is  too  late. 
Factors  to  Consider  When  Granting  Agencies. — 1.  In  granting 
an  exclusive  agency  the  manufacturer  must  make  sure  that  his 
line  will  receive  the  attention  which  such  an  arrangement  merits 
and  that  his  product  will  be  properly  presented  to  the  trade.  The 
grant  of  an  exclusive  agency  should  be  made  with  the  utmost  cau- 
tion, for  out  of  this  have  arisen  some  of  the  most  notorious  abuses 
known  to  the  export  business. 

2.  An  exclusive  agency  should  not  be  granted  an  export  house 
for  all  of  the  Latin  American  republics  unless  the  manufacturer  is 
thoroughly  convinced  that  the  sales  organization  in  each  of  the 
republics  will  be  productive  of  equally  good  results.  It  is  far  bet- 
ter to  proceed  slowly  and,  if  necessary,  distribute  the  agencies 
according  to  the  ability  of  the  various  concerns  to  market  the 
maximum  amounts  of  goods  in  the  several  countries.  This  is  in 
direct  ratio  to  the  competency  of  the  management  and  the  effi- 
ciency of  the  sales  organization  in  the  field. 

3.  Caution  Necessary  in  Granting  Exclusive  Agency.  No  exclu- 
sive agency  should  be  granted  to  a  concern  whose  reliability  or 
responsibility  is  questionable  in  even  the  slightest  degree.  Many 
business  men  have  been  so  misled  by  attractive  stationery  on 
which  exclusive  rights  were  solicited  that  they  failed  to  observe 
the  most  ordinary  precautions  with  which  a  sales  arrangement  in 
this  country  is  considered.  It  is  impossible  to  exaggerate  the 
importance  of  making  a  very  careful  investigation  beforehand 
relative  to  the  financial  standing  of  a  concern  applying  for  an 
agency.    Even  where  no  credit  risk  is  involved  the  manufacturer 


68  EXPOKTING  TO  LATIN  AMERICA 

should  guard  against  granting  his  representation,  especially  on 
an  exclusive  agency  basis,  to  a  firm  that  is  in  disrepute,  and  which 
would  thus,  indirectly,  vitally  affect  his  own  business  standing  in 
Latin  America. 

4.  Agencies  Obtained  for  Ulterior  Purposes.  No  exclusive  agency 
should  be  granted  unless  the  manufacturer  is  convinced  that  it 
has  not  been  obtained  for  the  purpose  of  keeping  his  goods  or 
brands  out  of  the  market.  Applications  for  exclusive  agencies 
coming  from  the  very  best  firms  must  always  be  closely  scrutinized 
and  subjected  to  the  severest  analysis.  Many  firms  who  ask  for 
such  agencies  do  so  merely  to  protect  an  agency  already  handled 
by  the  same  firm  on  equal  if  not  better  conditions  than  those 
ofi'ered  by  the  firm  of  whom  application  is  made.  Innumerable 
instances  are  on  record  where  exclusive  agencies  have  been  obtained 
and  after  samples  have  been  submitted,  even  to  responsible  firms, 
a  way  was  found  to  kill  every  possibility  for  the  sale  of  the  new 
product.  Such  efforts  were,  of  course,  in  the  direction  of  protect- 
ing lines  previously  introduced.  Had  the  manufacturer  not  granted 
exclusive  rights,  or  had  he  placed  his  agency  with  some  other 
export  house,  his  goods  might  have  been  successfully  introduced. 

Cooperation  with  Export  Houses. — If  satisfactory  replies  are 
received  from  the  export  houses  and  definite  arrangements  are 
made  for  the  representation  in  one  or  more  countries,  the  manu- 
facturer should  endeavor  to  cooperate  to  the  fullest  degree  with 
the  export  house. 

Mailing  of  Catalogs. — It  should  be  ascertained  how  many  cata- 
logs are  required,  not  only  for  the  use  of  branch  offices,  agents  and 
salesmen,  but  also  for  distribution  to  those  importers  whose  busi- 
ness is  to  be  solicited.  It  must  be  decided  whether  the  manu- 
facturer shall  mail  the  catalogs  to  all  lists  to  be  furnished  him 
by  the  export  house  or  whether  the  export  house  itself  will  attend 
to  the  distribution. 

Obtaining  Names  of  Local  Agents. — In  order  to  cooperate  most 
effectively  with  the  export  house  an  effort  should  be  made  to 
obtain  the  names  and  location  of  its  branch  offices,  correspondents, 
or  local  agents.  So  much  can  be  done  by  the  manufacturer  who 
is  earnestly  seeking  to  create  a  new  market  for  his  goods  that  it 
is  of  the  highest  importance  that  this  information  be  obtained. 
WTiere  an  export  house  will  make  a  sincere  effort  to  introduce  a 


EXPOET  COMMISSION  HOUSES  AND  AGENTS     69 

line,  it  should  not  be  unwilling  to  supply  this  information.  If 
a  manufacturer  has  difficulty  in  obtaining  this  it  should  be  suf- 
ficient evidence  to  him  of  but  a  half-hearted  effort  on  the  part 
of  the  export  house. 

Cooperation  by  Direct  Correspondence. — Arrangements  should 
be  made  with  export  commission  houses  providing  for  direct 
correspondence  with  dealers  or  importers.  The  purpose  of  this 
work  would  be:  (1)  To  stimulate  the  efforts  of  the  agents;  (2) 
to  develop  new  prospects  for  branch  offices;  (3)  to  second  the 
effort  of  the  local  agents.  This  work  is  very  desirable  inasmuch 
as  competition  is  becoming  keener  and  it  is  essential  to  obtain 
a  maximum  of  results  with  a  minimum  of  energy  and  time. 

How  Previous  Correspondence  May  be  Used. — It  happens  not 
infrequently  that  the  manufacturer  has  already  received  orders 
from  a  territory  for  which  an  agency  arrangement  is  made.  Such 
orders  are  probably  the  results  of  spasmodic  efforts  in  the  past,  the 
distribution  of  catalogs,  or  the  placing  of  orders  in  consequence 
of  advertisements  seen  in  export  journals.  Such  orders  should 
receive  the  careful  scrutiny  of  the  manufacturer,  and  copies  thereof, 
together  with  copies  of  previous  correspondence,  should  be  sent 
to  the  local  agent  of  the  commission  house  and  to  the  New  York 
office.  If  the  importer  who  has  placed  the  orders  is  advised  of  the 
appointment  of  a  local  agent,  a  largely  increased  business  may  be 
expected.  The  result  of  cooperative  work  with  exporters  and  tak- 
ing advantage  of  every  possible  lead  cannot  be  overestimated.  If 
there  is  to  be  correspondence  by  the  dealers  direct  with  the  house 
as  well  as  through  the  agents,  copies  of  all  letters  that  pass  between 
the  importer  and  the  manufacturer  should  be  sent  to  the  local 
agent.  The  efforts  of  the  latter  can  be  greatly  aided  by  intensive 
follow-up  work  on  the  part  of  the  manufacturer.  An  agent  who 
may  be  rather  indifferent  to  a  certain  line  can  be  greatly  stimu- 
lated by  seeing  the  efforts  which  a  manufacturer  makes  in  his 
behalf.  Too  much  stress  cannot  be  laid  on  the  importance  of 
continuous  and  consistent  cooperation. 

Arrang^ements  Should  Be  Scrupulously  Observed. — Although  all 
arrangements  with  export  commission  houses  should  be  entered 
into  very  cautiously,  once  they  have  been  made  they  should  be 
scrupulously  observed.  One  of  the  most  frequent  sources  of 
complaint  on  the  part  of  export  houses  and  their  correspondents 


%  EXPOETTXG  TO  LATIN  AMEEICA 

has  been  that  American  manufacturers,  when  they  have  tliought 
it  to  their  advantage  to  ignore  such  arrangements,  have  done  so 
without  hesitation  and  with  no  regard  whatever  for  the  efforts 
that  have  been  made  in  their  behalf  by  substantial  and  honorable 
houses.  This  abuse  takes  the  form  of  the  manufacturers'  filling 
orders  received  direct  from  the  dealer  or  importer  in  Latin  Amer- 
ica without  notice  to  the  commission  house,  whose  efforts,  not  infre- 
quently, were  the  direct  cause  of  the  order  having  been  placed.  The 
missionary  work  of  its  traveling  and  local  agents  or  branch  offices 
often  bears  fruit  months  after  direct  solicitation,  this  being  one 
of  the  peculiar  features  of  Latin  American  business.  An  agree- 
ment covering  the  sale  of  goods  in  a  certain  specified  district 
should  not  be  ignored  for  the  sake  of  a  possible  jjrofit  on  an 
isolated  sale,  and  a  liberal,  broad-minded  policy  is  by  far  the 
best.  The  export  commission  house  should  be  allowed  credit  for 
any  orders  received  direct  by  the  manufacturer,  and  the  greatest 
care  should  be  taken  that  sales  made  in  its  territory  are  properly 
credited  to  it.  In  such  cases  the  New  York  office  should  be  noti- 
fied immediately  upon  receipt  of  the  order,  and  notification  like- 
wise mailed  to  the  local  agent  or  the  branch  office  or  correspondent. 
It  can  be  readily  understood  that  this  policy  will  result  in  a 
great  additional  amount  of  business,  and  although  the  manu- 
facturer might  seemingly  profit  by  withholding  credit  to  a  com- 
mission house,  the  other  more  liberal  policy  would  ultimately  prove 
the  more  beneficial. 

How  Manufacturers  Should  Protect  Export  Commission  Houses. 
— Tlie  importance  of  protecting  the  export  commission  house  can- 
not be  exaggerated.  Numerous  misunderstandings  that  have 
proven  most  disastrous  to  a  nicely  developing  business  have  arisen 
out  of  the  policy  of  American  manufacturers  distributing  catalogs 
containing  prices  and  discounts  quite  at  variance  with  those  quoted 
the  export  house.  The  honest  and  conscientious  export  concerns 
that  are  trying  to  serve  the  best  interests  of  an  American  manu- 
facturer should  not  be  placed  in  the  embarrassing  position  of 
confronting  quotations  received  direct  by  one  of  its  clients  from 
the  manufacturer  which  may  be  entirely  different  from  that  war- 
ranted by  its  agreement.  Such  methods  cannot  but  reflect  dis- 
credit not  only  upon  the  individual  manufacturer  but  upon  Amer- 
ican  business   methods   generally. 


EXPORT  COMMISSIOX  HOUSES  AXD  AGENTS      71 

How  Inquiries  Should  Be  Handled. — When  arrangements  are 
made  vvith  an  export  house  it  should  be  determined  just  how  in- 
quiries for  catalogs,  prices,  and  discounts  shall  be  handled.  If 
catalogs  are  mailed,  they  should  contain  full  information  as  to 
how  the  business  is  to  be  conducted  and  whether  orders  should 
be  mailed  direct  to  the  manufacturer  or  to  the  export  commission 
house.  An  agreement  with  the  export  commission  house  should 
leave  no  doubt  whatever  in  regard  to  these  points:  (1)  whether 
the  manufacturer  shall  mail  the  catalogs  and  qi;ote  prices  with 
discounts;  (2)  \yhether  such  quotations  shall  be  made  by  the 
export  house. 

Objections  to  Export  Commission  Houses. — Although  the  many 
desirable  advantages  offered  by  export  houses  have  been  noted, 
their  importance  may  be  exaggerated.  As  has  already  been  indi- 
cated, export  commission  houses  do  not  always  originate  orders, 
and  frequently  merely  execute  them  after  they  have  been  received 
from  their  clients.  The  only  facility  that  many  export  firms 
offer  is  that  of  forwarding  catalogs  to  their  correspondents,  and 
in  such  cases,  particularly  where  there  is  no  local  representative 
on  the  ground  to  push  business,  the  results  may  be  very  dis- 
appointing. These  depend  largely,  therefore,  on  the  attitude  of 
the  dealer  to  whom  the  catalogs  are  sent  and  are  even  more 
marked  where  the  export  house  has  its  own  salesmen.  Many 
export  houses  handle  such  a  wide  variety  of  articles  that  it  seems 
an  utterly  hopeless  matter  for  a  representative  to  form  even  an 
adequate  idea  of  the  goods,  their  advantages  and  desirable  selling 
features. 

Export  Houses  Generally  Excel  in  Certain  Lines. — The  nature 
of  the  export  business  is  such  that  as  a  rule  practically  every 
sort  of  manufactured  product  that  can  be  sold  abroad  is  handled. 
It  can  be  readily  understood  why  it  is  most  difficult  for  the 
representative  of  an  export  commission  house  to  have  a  thorough 
knowledge  of  all  the  goods  that  he  offers.  If  such  a  representative 
is  well  posted  in  certain  branches  of  business  he  will  undoubtedly 
meet  with  far  greater  success  in  introducing  a  new  line  of  mer- 
chandise akin  to  his  specialty  than  would  otherwise  be  the  case. 
The  result  of  this  policy  is  the  sale  of  particular  lines  of  goods 
in  certain  cities  or  districts  and,  frequently,  of  an  entirely  different 
sort  of  merchandise  in  other  cities  in  the  same  republic.     A  mis- 


72  EXPOKTING  TO  LATIN  AMEEICA 

understanding  of  this  fact  is  one  of  the  chief  causes  of  failure  in 
marketing  through  the  export  house. 

New  York  Offices  of  Forei^  Houses. — As  a  direct  outgrowth  of 
export  commission  house  connections,  there  have  been  established 
in  the  past  few  years,  principally  in  New  York  City,  agencies  of 
many  Latin  American  firms.  In  consequence  pf  the  growth  of 
their  business  it  has  been  found  advantageous  by  many  Latin 
American  houses  to  replace  the  commission  house  with  their  own 
personal  representatives.  These  representatives  maintain  offices 
and  serve  their  main  house  in  many  important  directions.  They 
buy  of  American  manufacturers  orders  which  they  receive  from 
headquarters  for  every  conceivable  kind  of  merchandise.  By  very 
close  attention  to  details  and  supervision,  concessions  are  frequently 
obtained  in  the  shape  of  discounts,  prices,  and  profits  in  general. 
The  duties  of  the  resident  agent  of  such  houses  are  similar  to 
those  of  the  export  commission  house.  They  include  not  only 
the  placing  of  the  orders,  but  attention  to  all  details  of  shipping, 
freight,  rates,  handling  and  adjusting  of  claims,  and,  not  infre- 
quently, the  payment  of  bills. 

Increasing  an  Established  Business  Through  Export  Houses. — 
Many  manufacturers  transact  a  certain  volume  of  business  through 
export  houses.  These  sales  may  be  confined  to  certain  countries 
or  to  certain  portions  of  a  country,  and  very  often  a  greater  volume 
might  easily  be  done  if  the  right  effort  were  made.  The  manu- 
facturer who  has  established  such  connections  with  export  houses 
should  seek  by  every  possible  means  to  increase  his  business.  In 
order  to  determine  the  necessary  steps  to  take  he  should  do  the 
following : 

1.  Ascertain  definitely  to  which  countries  goods  are  being 
shipped. 

2.  Learn  in  which  sections  of  the  republics  the  sales  are 
largest. 

3.  If  the  product  is  salable  in  other  countries,  ascertain  why 
no  business  is  forthcoming  from  those  countries  or  districts. 

4.  Consider  the  best  means  of  developing  prospects  by  direct 
correspondence  which  may  then  be  given  to  the  agents  of  the 
export  house  for  attention. 

5.  Confer  with  the  export  house  and  agree  upon  a  plan  for 
more  effective  methods  of  solicitation. 


EXPORT  COMMISSION  HOUSES  AND  AGENTS     73 

6.  Arrange  to  correspond  with  the  export  house  agents. 

7.  If  the  export  house  cannot  furnish  adequate  representation 
in  all  countries  or  districts,  endeavor  to  make  better  arrangements 
with  other  exporters. 


PROBLEMS  IN  EXPORT  HOUSE   MANAGEMENT 

Initiation  of  Orders  or  "Indents." — So  many  misconceptions 
prevail  regarding  the  conduct  of  an  export  house,  its  expenses 
and  profits,  that  the  following  outline  will  enable  the  reader  to 
gain  some  idea  of  the  difficulties  daily  encountered  in  the  transac- 
tion of  business  with  Latin  America.  The  keen  competition  and 
the  necessity  for  a  large  volume  of  business  compels  vigorous 
solicitation  by  the  export  merchant  through  local  agents,  by  cable, 
by  correspondence,  or  through  traveling  representatives.  While 
many  unsolicited  orders  (or  "indents,"  as  they  are  known  to 
English  houses)  are  received,  the  export  merchants  (who  in  many 
instances  operate  for  their  own  account  virtually  as  jobbers)  are 
compelled  to  render  much  service  incidental  to  sales.  The  number 
of  articles  sold  is  usually  very  large,  it  being  necessary  to  take 
advantage  of  every  possibility,  markets  frequently  being  too  re- 
stricted to  permit  of  concentration  on  a  few  important  items. 
Some  of  the  developments  of  the  export  business  which  are  prov- 
ing a  source  of  great  expense  are  the  quotations  now  exacted  of 
export  merchants  by  their  foreign  clients.^  For  the  purpose  of 
retaining  the  good  will  of  the  latter  the  export  merchant  must 
watch  market  changes  in  order  to  give  prompt  cable  notice  thereof 
to  his  customers,  and  must  study  trade  and  merchandise  possi- 
bilities to  be  able  to  offer  promptly  the  most  salable  merchandise. 
As  cabling  is  very  expensive  and  the  cost  of  correspondence  is 
likewise  high,  this  becomes  a  serious  burden.  Foreign  merchants 
often  ask  quotations  of  export  houses  which  the  latter  are  com- 
pelled to  supply  with  no  definite  prospect  of  business.  As  the 
calculations  necessary  to  make  such  quotations  are  greatly  in- 
volved, requiring  the  service  of  technical  experts  who  must  be 
employed  for  this  particular  purpose,  an  added  expense  to  the 
export  merchant  must  be  considered. 
^See  John  F.  Fowler,  in  the  "American  Exporter." 


74  EXPOETING  TO  LATIN  AMERICA 

Extension  of  Credit. — The  export  commission  merchant  must  be 
thoroughly  familiar  with  the  firms  with  whom  he  transacts  busi- 
ness. It  is  not  only  essential  that  he  know  whether  there  is  a 
solid  basis  for  credit,  but,  of  even  greater  importance,  whether 
the  drafts  which  accompany  documents  are  promptly  met  at  ma- 
turity by  the  buyers.  In  some  instances  even  large  firms  who  ap- 
parently are  successful  abuse  the  exporter  by  not  meeting  drafts 
promptly,  thereby  causing  serious  inconvenience  to  the  shipper 
who  has  discounted  these  documents  with  his  banker  and  who 
may  be  suddenly  called  upon  to  pay  drafts  which  have  thus  been 
dishonored.  The  continued  failure  by  an  exporter's  clients  to  meet 
such  drafts  will  seriously  affect  the  latter's  standing  with  the  con- 
cerns to  whom  he  has  sold  their  paper.  The  same  methods  of 
obtaining  information  regarding  foreign  clients  are  followed  by 
the  export  merchants  as  by  manufacturers  who  deal  direct.  In 
any  event,  a  heavy  demand  on  the  credit  facilities  of  the  exporter 
is  made  by  the  foreign  buyers,  particularly  those  located  in  Latin 
America. 

Misunderstanding  Regarding  Terms. — The  matter  of  terms  is 
one  that  frequently  occasions  the  exporter  much  trouble.  The 
reasons  therefor  can  be  easily  understood  by  reference  to  Chapter 
XII.  There  are  many  possibilities  of  either  honest  or  deliberate 
misunderstanding  of  the  terms  F.O.B.,  CLE.,  and  C.I.F.&E.  Un- 
principled merchants  or  concerns  of  good  credit  standing  who 
are  inclined  to  sharp  practice,  if  to  their  advantage,  deliberately 
misinterpret  quotations  and  not  infrequently  hold  shipments  sub- 
ject to  order  for  the  purpose  of  obtaining  rebates.  This  is  often 
done  in  the  event  that  market  conditions  become  unfavorable  be- 
tween the  time  of  shipment  and  arrival  at  destination.  Difficulties 
also  arise  as  a  result  of  delay  in  obtaining  shipping  room  or  in 
consequence  of  delay  in  the  departure  of  a  vessel. 

Delays  in  Payments. — Export  merchants,  like  manufacturers 
who  ship  direct,  are  compelled  in  certain  countries  to  make  ship- 
ments on  open  account.  This  applies  particularly  to  Cuba,  Porto 
Rico,  Mexico,  and  certain  places  in  Central  America.  Merchants 
who  buy  on  such  conditions,  even  when  a  definite  time  of  pay- 
ment has  been  agreed  upon,  often  fail  to  make  prompt  settle- 
ment and  the  loss  of  interest  by  reason  of  the  d(>Uiy  always  falls 
to  the  lot  of  the  exporter  who  paid  for  the  merchandise  before 


EXPORT  COMMISSION  HOUSES  AND  AGENTS     75 

forwarding  it  to  Latin  America.  When  shipments  are  made  against 
drafts  drawn  at  sight  there  is  also  possibility  of  delay,  as  im- 
porters insist  upon  the  arrival  of  the  merchandise  before  accepting 
the  draft  and  the  loss  of  interest  thus  occasioned  must  also  be 
borne  by  the  exporter.  Drafts  drawn  at  a  certain  number  of  days 
sight  and  duly  accepted  frequently  are  not  paid  when  they  mature, 
because  conditions  are  unfavorable  in  the  matter  of  exchange  or  for 
some  other  reason.  The  protest  of  such  paper  is  very  expensive  and 
ineffective.  The  payment  of  drafts  may  also  be  refused  because 
of  errors  that  have  been  made  by  employees  of  the  shipper  or  of 
the  interior  manufacturer,  and  the  export  merchant  is  compelled 
to  suffer  the  loss  which  often  cannot  be  recovered  from  the  original 
shipper  who  disclaims  all  responsibility.  Such  errors  occur  despite 
the  attention  of  high-salaried  employees  whom  all  export  houses 
who  transact  a  volume  of  business  must  employ. 

Shipping  Details. — The  importer  of  Latin  America  expects  the 
export  house  to  obtain  the  very  lowest  freight  rates  and  it  is  the 
duty  of  the  exporter  to  keep  a  close  watch  on  ocean  rates,  which 
are  subject  to  great  fluctuations.  If  any  errors  occur  they  are 
quickly  detected  and  charged  to  the  exporter.  The  matter  becomes 
very  complex,  particularly  in  the  case  of  consignments  in  which 
are  included  many  kinds  of  merchandise  subject  to  varying  freight 
rates.  In  Chapters  X  and  XI  is  an  outline  of  the  require- 
ments for  invoices  and  other  shipping  documents,  all  of  which 
must  be  carefully  observed  and  complied  with  by  the  export  mer- 
chant. The  latter's  problem  is  more  complex  than  that  of  the 
manufacturer  who  ships  direct,  as  orders  frequently  call  for  mer- 
chandise from  many  different  manufacturers  whose  shipments 
arrive  at  different  times  but  must  all  be  assembled  and  for- 
warded together  on  one  bill  of  lading.  The  duties  of  the  export 
merchant  are  particularly  onerous  when  shipments  from  the  in- 
terior are  delayed,  insomuch  as  these  may  retard  the  forwarding 
of  many  other  items  on  the  same  order.  If  the  arrival  of  such 
delayed  shipments  is  counted  upon  to  take  advantage  of  a  steamer 
sailing,  further  trouble  is  possible.  This  is  due  to  the  fact  that 
the  time  required  for  the  preparation  of  the  many  documents  is 
limited.  This  applies  not  alone  to  consular  papers  but  to  bills  of 
lading,  commercial  invoices,  etc.  The  consuls  of  foreign  countries 
often  maintain  very  short  office  hours  which  make  it  difficult  for 


•^6  EXPORTING  TO  LATIN  AMERICA 

the  shipper  to  obtain  signatures  to  the  documents  in  time  for  the 
proper  dispatch  of  the  papers.  The  consular  invoices,  which  must 
be  supplied  in  original  with  a  varying  number  of  copies,  have  to 
show  metric  weights,  and  the  conversion  of  these  from  the  avoir- 
dupois weights  furnished  by  manufacturers  is  often  a  very  difficult 
problem,  requiring  considerable  time  to  insure  accuracy.  The 
commercial  invoice  must  also  be  carefully  written  in  order  to 
avoid  custom  house  complications,  and  must  be  such  that  the 
Latin  American  importer  may  easily  understand  it  and  check  the 
shipment  without  difficulty.  The  bill  of  lading,  which  cannot  be 
obtained  until  many  requirements  of  the  steamship  company  have 
been  complied  with,  must  often  be  supplied  to  the  foreign  consul 
for  his  signature.  Clearance  papers  are  needed  before  shipments 
can  be  dispatched  and  all  of  this  detail  requires  considerable  time. 
The  greatest  accuracy  is  essential,  especially  in  the  translation  of 
the  description  and  the  classification  of  weights,  which  must  agree 
in  all  the  papers. 

Banking  Documents  and  Their  Dispatch. — After  all  the  require- 
ments in  reference  to  the  shipment  and  clearance  of  the  goods 
have  been  complied  with,  the  preparation  of  banking  documents 
follows.  In  order  to  insure  the  forwarding  of  these  by  the  same 
steamer  which  carries  the  shipment  special  efforts  and  very  rapid 
work  are  often  required.  This  is  so  vital  because  importers  can- 
not obtain  possession  of  shipments  that  are  made  against  docu- 
ments until  the  latter  have  been  accepted  or  paid,  and  if  by  any 
chance  the  necessary  shipping  papers  are  delayed,  the  shipments 
may  be  placed  in  storage  for  several  weeks  until  the  papers  arrive. 
Some  idea  of  the  exertions  required  to  guard  against  this  possi- 
bility may  be  obtained  from  the  knowledge  that  steamers  often 
carry  hundreds  of  lots  from  the  same  export  merchant,  the  docu- 
ments of  which  have  had  to  be  prepared  in  the  manner  outlined 
above.  Very  often  the  papers  must  be  sent  in  the  bag  of  the 
steamship  agent,  which  is  the  last  to  be  placed  on  board,  having 
been  completed  too  late  for  the  mail. 

Keeping  Export  Accounts. — It  will  be  realized,  from  the  amount 
of  detail  required  to  handle  Latin  American  business  properly, 
that  much  bookkeeping  is  necessary.  This  is  far  more  difficult  in 
the  case  of  export  merchants  who  are  compelled  not  only  to  buy 
for  the  accounts  of  many  customers,  but  to  make  against  them 


EXPORT  COMMISSION  HOUSES  AXD  AGENTS      77 

drafts  at  varying  maturities,  which  documents  they  sell  for  the 
purpose  of  financing  the  transactions.  The  account  of  cartage, 
freight  transfer,  and  other  charges,  alone  is  a  large  one,  and  the 
calculations  of  ocean  rates  on  the  different  classes  of  merchandise 
shipped  is  still  more  serious.  The  necessity  for  absolute  accuracy 
is  emphasized  by  the  complexity  of  calculations  in  CLE.  and 
C.I.E.&E.  transactions.  If  difficulties  with  customers  are  to  be 
avoided,  the  calculations,  even  after  a  thorough  understanding 
of  terms,  require  the  greatest  care.  This  is  particularly  so  in 
figuring  accounts  in  which  the  question  of  exchange  is  involved, 
inasmuch  as  importers  frequently  seek  to  compel  the  exporter  to  pay 
the  exchange  and  commission. 

Profits  of  Export  Houses. — American  manufacturers  who  have 
no  knowledge  of  the  workings  of  export  merchants  from  whom 
they  frequently  receive  orders  for  the  products,  mistakenly  imagine 
that  the  exporter  makes  very  large  profits  which  are  denied  to  the 
manufacturer.  In  reality,  the  profits  are  small  considering  the  haz- 
ards of  the  export  business,  the  great  possibility  of  error,  the  tech- 
nical knowledge  necessary  to  conduct  it,  and  the  thorough  under- 
standing of  the  business  methods  and  conditions  in  Latin  American 
republics.  The  most  successful  export  merchants  today  depend 
for  their  profits  largely  upon  the  volume  of  business  they  transact 
and  grant  to  their  clients  all  discounts  which  are  received  from 
manufacturers.  The  charge  for  service  in  placing  the  orders, 
financing  the  accounts,  and  dispatching  the  merchandise  varies. 
On  goods  that  are  very  bulky  it  is  as  low  as  1  per  cent,  and  some- 
times less;  where  the  merchandise  is  staple  it  is  2%  per  cent.; 
and  in  ordinary  mixed  lines  it  is  5  per  cent.  The  interest  charged 
by  the  exporter  to  the  buyer  of  Latin  America  is  6  per  cent.,  and 
this  is  very  much  lower  than  the  rate  which  the  latter  would  have 
to  pay  to  local  banks.  When  an  export  house  undertakes  the 
introduction  of  an  American  product  special  arrangements  for  a 
selling  commission  are  made,  but  even  in  such  instances  the  manu- 
facturer would  find  that  direct  representation  in  the  Latin  Ameri- 
can markets  would  be  far  more  costly  than  transactions  through 
the  export  merchants. 

Cooperation  Between  Export  Houses  and  Manufacturers. — In 
considering  the  service  wliich  export  houses  have  rendered  to 
American  manufacturers  and  the  fact  that  because  of  the  service 


78  EXPORTING  TO  LATIN  AMERICA 

they  render  to  buyers  they  will  continue  to  be  an  important  factor 
in  the  Latin  American  trade,  the  need  for  cooperation  and  a  better 
understanding  is  evident.  The  alert  manufacturer  will  take  ad- 
vantage of  every  possible  means  to  market  his  product  and  much 
can  be  accomplished  by  proper  cooperation  with  export  merchants. 
The  latter  should  always  be  taken  into  consideration  in  a  selling 
campaign,  inasmuch  as  it  is  almost  certain  that  many  buyers  in 
Latin  America  who  may  be  interested  in  American  products  would 
prefer  to  buy  from  an  export  house  rather  than  direct.  For  this 
reason,  their  position  in  export  trade  should  be  thoroughly  under- 
stood, and  instead  of  being  a  detriment  they  can  be  made,  if  the 
work  is  intelligently  planned,  a  valuable  addition  to  sales  efforts. 

What  the  Export  Agent  Is. — With  the  development  of  the 
export  trade  has  come  the  establishment  of  manufacturers'  export 
agents.  Like  the  export  houses,  they  are  located  in  the  seaboard 
cities,  and  act  as  the  representatives  of  manufacturers.  They 
sometimes  likewise  assume  the  duties  of  the  representatives  of 
foreign  dealers. 

Duties  of  the  Export  Agent. — The  principal  duty  of  the  export 
agent  is  to  act  as  a  salesman.  It  is  his  business  to  keep  in 
touch  with  and  visit  the  export  commission  houses  to  obtain  such 
orders  as  may  be  placed  by  the  export  commission  house  for  the 
goods  of  which  they  control  the  sale.  They  likewise  distribute 
the  literature  of  manufacturers,  such  as  circulars  and  catalogs, 
in  addition  to  samples,  where  it  is  practical  to  do  so.  By  these 
means  they  serve  to  further  the  interests  of  the  manufacturer  with 
the  export  house  as  they  can  create  for  the  manufacturer  a  greater 
demand  for  his  goods.  Manufacturers'  export  agents,  where  they 
act  as  correspondents  of  Latin  American  houses,  also  execute  orders 
for  such  American  products  as  may  be  received  from  the  Latin 
American  correspondents,  usually  large  importing  firms. 

The  export  agent  can  likewise  confer  with  visiting  merchants 
from  Latin  America  who  may  happen  to  be  in  New  York.  He 
may  display  for  the  benefit  of  those  interested  such  samples  as  the 
manufacturer  may  desire  to  show.  He  may  also  attend  to 
correspondence  with  the  Latin  American  dealers,  should  the  Amer- 
ican manufacturer  prefer  to  have  his  business  done  in  that  way. 

Other  Functions  of  the  Export  Agent. — In  addition  to  the  duties 
outlined  in  the  preceding  paragraphs,  it  falls  to  the  lot  of  the 


EXPORT  COMMISSION  HOUSES  AXD  AGENTS     79 

export  agent  to  prepare  papers  covering  the  shipment  of  goods 
exported  to  Latin  America.  This  is  a  very  important  work  re- 
quiring the  utmost  competency  and  a  thorough  knowledge  of  local 
conditions  throughout  Latin  America.  The  customs  laws  are  dif- 
ferent in  each  republic,  and  the  regulations  of  custom  house  officers 
differ  so  widely  that  an  expert  in  the  preparation  of  shipping  docu- 
ments can  frequently  effect  very  important  savings.  Another 
detail  to  which  the  agent  can  give  his  attention  is  the  forwarding 
of  goods,  making  arrangements  for  the  carrying  of  the  merchandise 
by  the  steamship  lines,  combining  shipments  under  one  bill  of 
lading,  placing  the  insurance,  etc. 

Why  Manufacturers'  Agents  Handle  Various  Goods. — The  very 
nature  of  the  work  of  an  export  agent  makes  for  great  familiarity 
with  many  classes  of  merchandise.  By  reason  of  his  daily  visits 
to  export  commission  houses,  he  is  in  such  touch  with  the  export 
situation  that  opportunities  of  obtaining  business  for  many  differ- 
ent lines  of  goods  constantly  present  themselves  to  him.  After  the 
agent  has  succeeded  in  placing  with  the  various  commission  houses 
the  products  of  the  manufacturer  he  represents,  it  is  his  duty  to 
keep  in  touch  with  and  endeavor  to  secure  the  cooperation  of  export 
house  correspondents  and  agents,  for  the  purpose  of  increasing 
the  sales.  Because  of  the  wide  range  of  merchandise  handled 
by  the  export  houses,  the  manufacturer's  agent  is  able  to  secure 
business  for  many  distinct  lines.  His  success  is  in  direct  ratio  to 
his  knowledge  of  conditions  and  the  energy  with  which  he  pushes 
the  sale  of  the  products  he  represents. 

The  Payment  of  an  Export  Agent. — A  manufacturer  who  has 
not  engaged  the  service  of  an  export  agent  is  naturally  desirous 
of  knowing  what  salary  or  remuneration  is  expected  by  an  agent. 
This  depends  upon  many  conditions  but  is  based  on  the  volume  of 
business  done  and  his  service  to  the  manufacturer  in  the  matter 
of  forwarding  goods,  etc.  An  agent  who  represents  a  number  of 
firms  can  naturally  make  his  charges  to  each  much  smaller  than 
if  he  were  representing  one  concern  exclusively.  ]\Iany  of  the 
most  successful  arrangements  have  been  made  on  a  basis  of  part 
salary  and  part  commission. 

How  to  Obtain  a  Good  Export  Agent. — The  rules  that  have  been 
cited  for  opening  correspondence  with  an  export  commission  house 
apply  with  equal  force  to  the  engaging  of  an  export  agent.     The 


80  EXPORTING  TO  LATIN  AMERICA 

first  step  is  the  obtaining  of  a  list  of  the  names.  Such  a  list  is 
available  in  the  directories.  References  should  invariably  be  re- 
quired and  full  infoimation  exacted  in  regard  to  the  duties  per- 
formed by  the  export  agent.  A  very  effective  means  that  is  fre- 
quently employed  to  obtain  an  export  agent  is  the  insertion  of 
appropriate  advertisements  in  the  Want  columns  of  New  York 
newspapers.    The  "Export  Trade  Directory"  may  also  be  consulted. 

Manufacturers'  Cooperation  with  Export  Agents. — ^After  ar- 
rangements have  been  made  by  the  manufacturer  with  the  export 
agent,  he  should  endeavor  to  obtain  the  fullest  value  in  the  way 
of  service.  The  export  agent  should  be  supplied  with  catalogs, 
circulars,  and  price  lists.  He  should  be  asked  to  inform  the 
manufacturer  of  the  very  best  means  of  furthering  his  business, 
and  suggestions  made  by  him  should  be  studied  very  carefully. 
Cooperation  should  be  the  watchword  with  the  export  agent  as 
with  the  export  house. 

Questions  to  be  Asked  Applicants. — In  order  that  no  mistake 
may  be  made  in  granting  an  export  agency,  the  manufacturer 
should  invariably  insist  upon  the  fullest  knowledge  regarding  the 
character,  ability,  and  responsibility  of  the  agent.  In  addition, 
he  should  be  requested  to  state  what  goods  he  is  handling,  how 
long  he  has  been  handling  them,  in  what  countries  his  principal 
correspondents  are  located  and  for  what  fields  he  offers  the  great- 
est sales  possibilities. 


CHAPTER  VI 

TRAVELINa  SALESMEN.     GENERAL  AND  LOCAL  AGENTS 

TRAVELING  SALESMEN 

Advantages  of  Personal  Representation. — ^The  most  effective 
means  of  obtaining  business  in  Latin  America  is  through  travel- 
ing salesmen.  This  is  recommended  by  all  American  Consular 
Officers,  trade  investigators,  Chambers  of  Commerce,  and  by  firms 
who  have  been  most  successful  in  establishing  a  trade  in  Latin 
America.  Notwithstanding  the  oft-repeated  advice,  many  thou- 
sands of  dollars  are  annually  wasted  upon  useless  catalogs  and 
misdirected  campaigns  by  mail.  The  fact  that  Latin  American 
business  men  are  known  to  be  conservative  makes  it  even  more  essen- 
tial that  an  effort  to  establish  permanent  business  in  the  southern 
republics  should  be  based  on  direct  representation.  A  traveling 
representative,  should  have  a  thorough  knowledge  of  the  products 
that  he  means  to  sell,  a  willingness  to  conform  to  the  customs  of 
the  people  in  the  countries  that  he  will  visit,  and  he  should  have, 
if  possible,  a  knowledge  of  their  language.  The  advantages  of 
proper  representation  are  obvious.  The  representative  may  not 
only  effect  actual  sales,  but  may  serve  as  an  investigator  for  the 
purpose  of  obtaining  all  facts  in  regard  to  distribution  of  an  article, 
its  prospects  for  future  sale,  foreign  dompetition,  and  peculiar  local 
trade  conditions.  He  can  also  make  adjustment  of  claims  that 
may  arise,  appoint  local  or  general  agents,  outline  territories,  and 
obtain  for  the  manufacturer  the  good  will  of  the  dealers  whom 
he  visits. 

Difficulties  of  Direct  Representation. — The  problem  of  creating 
an  effective  sales  organization  for  the  domestic  market  is  intensi- 
fied in  the  case  of  the  Latin  American  trade.  This  is  due  to  the 
following  causes: 

1.  The  difficulty  of  obtaining  reliable,  experienced  or  com- 
petent men. 

81 


82  EXPORTING  TO  LATIN  AMEEICA 

2.  The  vast  extent  of  the  Liatin  American  territory  to  be 
covered. 

3.  The  high  expense  of  traveling  in  the  Latin  American  re- 
publics. 

4.  The  time  required  to  place  the  business  on  a  remunerative 
basis. 

5.  The  lack  of  knowledge  of  the  average  business  man  relative 
to  the  best  trade  field  for  his  particular  product. 

6.  The  time  and  expense  required  to  train  applicants  for  posi- 
tions as  salesmen.  Notwithstanding  the  drawbacks  outlined,  it 
will  still  be  conceded  that  the  most  practical  and  successful  way 
of  building  business  with  the  southern  countries  is  to  send  trained 
men,  possessing  both  a  knowledge  of  the  goods  that  they  are  selling 
and  an  acquaintance  with  the  customs  and  life  of  the  Latin  Amer- 
ican people.  There  is  no  other  means  which  can  establish  so 
quickly  the  business  of  a  manufacturer  on  a  paying  basis,  as 
the  traveling  salesman. 

Necessary  Qualifications. — The  merchant  who  seeks  to  extend 
his  business  should  carefully  weigh  the  qualifications  of  the  men 
whom  he  contemplates  sending  as  his  representatives.  In  this 
instance,  again,  his  best  interests  will  be  served  by  delaying  until 
he  can  obtain  an  efficient  man  in  preference  to  sending  the  first 
applicant  in  too  great  haste  to  obtain  results.  Following  are  the 
qualifications  which  should  be  insisted  upon  by  the  merchant  de- 
siring to  serve  his  best  ends : 

1.  Absolute  Dependability.  It  is  very  important  that  the  manu- 
facturer satisfy  himself  in  advance  of  the  absolute  reliability  of 
the  representative  since  so  much  more  is  expected  of  him  than 
would  be  the  case  in  the  United  States.  Innumerable  instances 
are  on  record  where  this  has  not  been  done,  and  as  a  consequence 
excellent  prospects  which  the  manufacturer  may  have  had  were 
ruined.  Samples  should  never  be  sent  merely  upon  request,  and  no 
money  should  ever  be  advanced  unless  the  applicant  demonstrates 
his  reliability.  The  greatest  care  should  be  taken  to  insure  strict 
sobriety. 

2.  Adaptability.  He  must  be  able  readily  to  adapt  himself  to 
the  very  different  conditions  in  the  countries  he  is  to  visit.  Many 
otherwise  competent  men  have  proved  failures  because  of  their 
unwillingness  to   recognize  this   and   their   inability   to  transact 


TEAVELIXG  SALES31EX  83 

business  in  the  very  different  way  in  which  it  is  carried  on  by 
the  Latin  Americans. 

3.  Thorough  Knowledge  of  the  Product  Sold.  No  man  should 
be  sent  to  Latin  America  who  does  not  possess  a  thorough  under- 
standing of  the  articles  he  is  to  sell.  Latin  American  merchants 
are  very  keen  traders,  and  expect  the  man  who  wishes  to  sell  them 
goods  to  know  all  about  the  products  that  he  may  explain  them 
thoroughly.  An  inability  to  do  so  results  disastrously  for  the 
manufacturer. 

4.  He  Should  Speak  Spanish  and  Portuguese.  The  advantages 
of  a  knowledge  of  languages  are  obvious.  An  effort  should  be 
made  by  the  manufacturer  to  obtain  a  man  who  has  at  least  some 
knowledge  of  Spanish  and,  if  business  in  Brazil  is  contemplated, 
of  Portuguese.  The  Latin  Americans  consider  it  a  compliment  to 
be  addressed  in  their  own  tongues  and  it  is  far  easier  to  obtain 
and  hold  their  attention  when  they  are  spoken  to  in  Spanish,  or 
Portuguese,  as  the  case  may  be.  An  ability  to  use  their  language, 
combined  with  expert  knowledge  of  the  product  sold,  is  almost 
certain  to  result  profitably.  However,  a  failure  to  speak  the 
languages  need  not  preclude  success  if  the  representative  possesses 
the  other  qualities  mentioned,  which  are  indispensable. 

How  to  Obtain  Representatives,. — It  is  an  admitted  fact  that  the 
difficulty  of  obtaining  reliable  men  for  the  Latin  American  field 
is  very  serious.  The  remuneration  expected  by  experienced  men 
is  high,  and  the  average  American  manufacturer  does  not  feel 
justified,  particularly  in  the  first  stages  of  his  export  experience, 
in  incurring  such  a  heavy  expense.  Nevertheless,  it  is  possible 
to  obtain  competent  men  at  moderate  cost  and  with  the  increase 
in  Latin  American  trade  it  will  become  less  and  less  difficult. 
Some  of  the  means  are  as  follows : 

1.  Advertising  in  New  York  newspapers. 

2.  Advertising  in   Latin   American   local  papers. 

3.  Correspondence  with  commercial  organizations. 

4.  Cooperation  of  export  and  trade  journals. 

5.  Correspondence  with  banks  or  commercial  houses  in  Latin 
America. 

6.  American  consuls. 

7.  Training  the  representative. 

8.  Correspondence  with  universities. 


84  EXPORTING  TO  LATIN  AMERICA 

9.  Watching  the  trade  opportunities  column  in  "Daily  Com- 
merce Reports/'  and  similar  departments  of  trade,  technical,  and 
export  journals. 

1.  Advertising  in  New  YorJc  Newspapers.  By  reason  of  its 
large  population  and  its  enormous  export  business  New  York  City 
attracts  a  great  number  of  men  competent  to  act  as  representatives. 
Advertisements  placed  in  one  or  more  of  its  principal  papers  are 
usually  productive  of  results.  An  advertisement  should  state  in 
detail  the  exact  requirements  of  the^  manufacturer  and  the  territory 
it  is  desired  to  cover ;  the  applicant  should  be  requested  to  state  his 
experience  and  reference  should  be  exacted.  The  latter  requisite 
cannot  be  too  strongly  insisted  upon,  as  great  losses  have  resulted  to 
exporters  who  have  shown  too  great  an  eagerness  to  accept  without 
investigation  the  claims  of  applicants  for  positions  as  travelers  in 
Latin  America. 

2.  The  Use  of  Latin  American  Local  Papers.  Another  method 
which  has  been  found  very  successful  by  American  manufacturers 
has  been  the  use  of  the  principal  dailies  in  the  large  Latin  Amer- 
ican cities.  This  means  is  especially  useful  where  it  is  desired 
to  obtain  representatives  for  a  local  market.  It  has  its  advan- 
tages in  that  the  manufacturer  can  reach  a  much  larger  number 
of  prospective  agents  than  in  any  other  way,  and  it  can  be  espe- 
cially recommended  where  definite  arrangements  can  be  made  by 
correspondence.  A  list  of  the  principal  papers  in  Latin  America 
with  their  advertising  rates  may  be  found  in  the  Appendix. 
Letters  to  these  newspapers  may  be  written  in  Spanish  or  English, 
and  the  cost  of  the  advertisements  may  be  covered  by  international 
post  office  money  order  or  New  York  bank  draft. 

Hoio  an  Advertisement  Should  be  Worded.  In  order  to  save 
time  it  is  recommended  that  a  form  containing  all  necessary  ques- 
tions be  sent  to  every  applicant  for  a  position.  This  form,  for 
the  purpose  of  economy,  should  be  in  both  English  and  Spanish. 

3.  Correspondence  with  Commercial  Organizations.  The  de- 
velopment of  Latin  American  trade  is,  in  a  large  measure,  due 
to  organizations  which  have  rendered  valuable  service  to  the 
exporter.  Among  these  may  be  mentioned  the  National  Association 
of  ]\Ianufacturers,  New  York  City,  and  the  Philadelphia  Com- 
mercial Museum,  Philadelphia.  The  bulletins  of  these  organiza- 
tions contain  announcements  of  dealers  in  Latin  America  who 


TEAVELING  SALESMEN  85 

wish  to  represent  American  manufacturers.  The  efforts  of  these 
organizations  are  supplemented  by  their  representatives  in  the 
principal  Latin  American  cities.  An  example  of  this  class  of 
organization  is  the  Chicago  Association  of  Commerce  whose  repre- 
sentatives did  very  successful  work  in  Buenos  Aires  until  the 
office  was  taken  over  by  the  American  commercial  attache.  The 
United  States  Government  also  lends  its  aid  through  its  commer- 
cial agents  in  the  principal  American  cities.  In  the  "Daily  Com- 
merce Reports"  frequently  appear  inquiries  from  foreigners  who 
wish  to  act  as  representatives  of  American  concerns. 

4.  Cooperation  of  Export  and  Trade  Journals.  Many  export 
and  trade  journals  receive  letters  from  individuals  and  firms  in 
Latin  America  who  desire  to  represent  American  firms.  Such 
applications  are  referred  to  interested  manufacturers  and  are 
usually  made  a  part  of  the  service  rendered  in  connection  with 
advertisements. 

5.  Correspondence  ivitli  Banks  and  Commercial  Houses  in  Latin 
America.  Letters  in  which  the  requirements  are  specified  addressed 
to  banks  and  important  commercial  houses  are  often  productive 
of  results.  Such  letters  should  invariably  be  accompanied  by 
international  post  office  coupon  for  reply. 

6.  Aid  of  American  Consuls.  American  Consuls  are  often  re- 
quested by  natives  or  foreign  residents  in  their  districts  to  obtain 
agencies  for  American  manufactures.  By  addressing  consuls  and 
stating  in  detail  the  requirements,  valuable  connections  are  often 
made. 

7.  Training  the  Bepresentative.  Owing  to  the  difficulty  of  ob- 
taining reliable  representatives  in  the  Latin  American  fields,  many 
American  manufacturers  have  adopted  the  custom  of  educating 
men  in  their  own  establishments  for  the  purpose  of  sending  them 
to  Latin  American  countries.  In  this  they  are  wisely  following 
the  example  of  the  German  manufacturer  who  is  famous  for  his 
thoroughness  and  attention  to  .detail.  This  method  may  be  highly 
recommended,  and  the  best  type  for  the  purpose  is  an  ambitious 
young  man  who  possesses  a  good  character,  adaptability  and  an  easy 
suave  manner. 

How  to  Train  a  Bepresentative.  Having  selected  a  man,  he 
should  be  urged  to  equip  himself  as  quickly  as  possible.  He  may 
do  this  while  being  trained  in  the  business,  its  technical  details,  etc. 


g6  EXrOETING  TO  LATIN"  AMEEICA 

Thoroughness  should  be  absolutely  insisted  upon,  as  a  lack  of 
attention  to  detail  has  been  frequently  complained  of  by  export 
houses  of  New  York  as  one  of  the  greatest  deficiencies  of  Amer- 
ican business.  A  brief  course  of  study  that  may  prove  valuable 
is  as  follows : 

(a)  Languages.  Spanish  and,  if  Brazil  is  to  be  visited,  Portu- 
guese. In  almost  every  city  there  are  native  teachers  who  can 
give  such  instruction.  The  intelligent  student  with  the  aid  of 
grammars  and  readers  will  be  able  to  obtain  at  least  sufficient 
acquaintance  with  the  language  that  he  may  make  himself  under- 
stood.    The  best  grammars,  readers,  etc.,  are  listed  on  page  470. 

(b)  Geography.  This  is  a  study  about  which  Americans,  as  a 
class,  are  woefully  ignorant.  Approached  from  the  commercial 
standpoint  it  becomes  fascinating.  A  thorough  study  should  be 
made  of  the  geography  of  the  region  it  is  intended  to  visit  and 
of  its  waterways,  ports,  cities,  and  means  of  communication.  Some 
excellent  books  on  this  topic  are  listed  on  page  473. 

(c)  Books.  The  best  books  available  which  deal  with  the  coun- 
tries and  their  inhabitants  should  be  read.  A  knowledge  of  the 
history  and  literature  of  the  Latin  American  people  will  prove  of 
great  value.  An  ability  to  refer  to  such  topics  in  conversation 
will  aid  in  quickly  establishing  intimate  relations  with  the  Latin 
American  buyer  and  will  be  helpful.  A  list  of  the  best  books  deal- 
ing with  the  various  countries  is  found  in  the  Appendix  on 
page  474. 

(d)  Eeports  on  Trade  Possibilities.  All  available  reports  re- 
garding the  products  whose  sale  in  Latin  America  will  be  under- 
taken by  the  representative  should  be  carefully  studied.  These 
reports  are  referred  to  in  the  Appendix  and  will  be  found  very 
helpful  in  acquainting  the  prospective  traveler  with  conditions 
which  vary  widely  in  the  different  countries. 

8.  Co7'respondence  With  UniversHies.  An  increasing  number 
of  universities  and  schools  are  adding  courses  of  training  in  Latin 
American  affairs  or  include  in  their  courses  of  Economies  and  Busi- 
ness Administration,  lectures  on  Commerce  with  I^atin  America. 

From  these  institutions  may  be  obtained  the  names  of  young  men 
who  wish  to  travel  in  the  Southern  Eepublics. 

9.  "Trade  Opporlunities"  Columns.  In  tlie  "Commerce  Ee- 
ports" and  in  pamphlets  and  bulletins  issued  by  many  trade  organi- 


TRAVELING  SALESMEN  87 

zations  are  found  applications  of  individuals  in  Latin  America  who 
wish  to  represent  American  houses. 

Before  the  departure  of  the  traveling  representative  the  head 
of  the  firm  should  make  certain  that  his  representative  possesses 
a  thorough  knowledge  of  his  products  and  all  the  conditions  sur- 
rounding their  manufacture,  that  he  may  be  able  to  answer  intelli- 
gently all  questions  put  to  him  by  the  alert  Latin  American  dealer. 
This  knowledge  should  be  so  complete  that  he  will  not  be  at  a  loss 
for  intelligent  answers  when  serious  problems  arise.  All  ques- 
tions relative  to  terms  should  be  settled,  the  sales  methods  to  be 
employed  and  a  definite  business  policy  should  be  determined  upon. 
Unless  the  manufacturer  feels  that  his  representative  is  capable  of 
being  in  reality  his  personal  representative,  he  should  not  be 
allowed  to  depart.  This  is  strongly  emphasized  because  of  the 
general  lack  of  thoroughness  of  American  business  men. 

Knowledge  of  Business  Previously  Done. — It  will  be  found  in- 
valuable to  supply  a  salesman  with  all  details  regarding  the  busi- 
ness previously  done  in  the  Latin  American  territory  about  to  be 
visited.  This  should  be  given  him  whether  the  sales  have  been 
made  direct  or  through  export  commission  houses.  By  using  this 
information  a  salesman  can  make  more  rapid  progress  than  other- 
wise. Being  thoroughly  acquainted  with  the  facts,  he  is  in  posi- 
tion to  render  more  valuable  and  intelligent  service.  If  the  product 
is  machinery  or  a  mechanical  device  of  any  sort  the  representative 
should  have  a  thorough  knowledge  of  its  working  in  order  that 
he  may  demonstrate  it  in  operation.  Sales  have  frequently  been 
made  simply  because  the  representative  knew  how  to  demonstrate 
the  advantages  and  benefits  of  his  machinery,  and  many  instances 
are  on  record  where  the  loss  of  sales  was  due  solely  to  the  repre- 
sentative's failure  to  inform  himself  thoroughly  about  parts  of  a 
machine  and  their  operation. 

The  Value  of  Letters  of  Introduction. — The  importance  of 
carrying  letters  of  introduction  cannot  be  exaggerated.  They  are 
of  extraordinary  use  in  enabling  the  representative  more  quickly 
to  establish  friendly  relations  with  buyers.  Friendship  plays  such 
an  important  part  in  the  life  of  the  Latin  American  dealer  that 
any  means  which  can  be  taken  to  bring  about  intimacy  more 
quickly  should  be  adopted.  Letters  of  introduction  should  be 
addressed  as  follows: 


88  EXPOETING  TO  LATIN  AMEEICA 

1.  To  Leading  Mercliatits.  Letters  to  leading  merchants  who 
sell  the  product  it  is  desired  to  introduce  should  be  signed  by  the 
head  of  the  Company. 

2.  To  Prominent  Banks.  Their  names  may  be  obtained  either 
from  the  bank  with  whom  the  Company  does  business  and  who 
has  correspondents  in  the  Latin  American  countries  or  from  the 
New  York  correspondents  of  the  manufacturer's  bank,  who  are 
sure  to  have  these  connections. 

3.  To  American  Consuls.  A  general  circular  letter  of  intro- 
duction to  the  Consuls  may  be  obtained  through  the  local  repre- 
sentative in  Congress.  The  representative  should  use  this  letter 
immediately  upon  arrival  and  before  attempting  to  do  business. 
In  the  event  that  specific  aid  is  desired  of  a  Consul  a  special  letter 
of  introduction  should  be  addressed  to  that  official.  Consuls  are 
often  called  upon  to  sponsor  American  travelers  and  embarrass- 
ment may  result  for  lack  of  proper  credentials. 

4.  Miscellaneous  Letters.  These  may  be  obtained  from  houses, 
who  already  have  an  established  business,  to  their  agents  or  repre- 
sentatives in  the  different  Latin  American  countries.  A  repre- 
sentative who  carries  such  letters  will  find  them  of  great  value 
in  obtaining  recognition,  particularly  on  the  part  of  the  larger 
importing  firms,  many  of  wliich  do  a  vast  business,  and  whom 
it  is  correspondingly  more  difficult  to  interest  on  account  of 
already  established  relations. 

5.  General  Letter  of  Introduction.  This  should  be  addressed, 
"To  whom  it  may  concern,"  and  should  ask  consideration  for  the 
traveler. 

Letter  of  Authority. — Traveling  salesmen  in  Latin  America  fre- 
quently find  it  desirable  to  show  unmistakable  authority  for  certain 
procedure.  A  simple  letter  setting  forth  the  authority  of  the 
representative  may  prove  highly  valuable  in  a  crisis.  When  the 
representative  is  given  power  to  make  collections  or  merely  to 
take  orders,  the  authority  should  be  specifically  defined.  In  order 
to  make  such  instructions  valid,  the  signature  of  the  manufacturer 
who  grants  it  should  be  certified  by  a  notary  public  whose  authority 
in  turn  is  acknowledged  by  the  circuit  clerk,  the  governor  of  the 
state,  and  the  secretary  of  the  United  States,  each  in  their  turn, 
and  by  the  diplomatic  representative  of  the  country  in  which  it  is 
to  be  used. 


TEAVELING  SALESMEN  89 

Cfredentials  of  Business  Organizations. — Too  many  letters  cannot 
be  obtained.  Among  useful  letters  is  a  communication  on  the 
stationery  of  the  local  board  of  trade,  bearing  the  official  seal  and 
signature  of  its  officers. 

The  Value  of  a  Passport. — Although  a  passport  is  not  essential, 
it  may  occasionally  be  found  of  value  as  a  means  of  identification. 
As  it  is  not  difficult  to  obtain,  every  traveler  should  provide  him- 
self with  one.  It  may  be  obtained  by  addressing  a  letter  to  the 
Department  of  State,  Washington,  D.  C.     The  cost  is  $1.00. 

The  Value  of  Advance  Letters. — The  sending  of  letters  in  ad- 
vance of  a  salesman  is  very  important.  Particularly  is  this  so  in 
the  case  of  a  concern  making  its  first  attempt  to  secure  Latin 
American  trade.  The  letters  should  be  properly  couched,  and 
may  be  accompanied  by  dignified  advertising  matter.  This  mat- 
ter should  be  of  the  nature  to  inspire  confidence  in  the  manufac- 
turer's products  and  his  ability  to  furnish  what  is  required  by  the 
Latin  American.  Advance  letters  should  be  carefully  timed  in 
order  that  they  may  not  reach  the  recipient  too  far  in  advance 
of  the  representative's  visit.  These  should  be  sent  only  to  such 
dealers  as  will  presumably  offer  a  good  field  for  his  efforts.  Great 
care  should  be  taken  not  to  address  letters  to  dealers  who  may 
prove  unworthy,  inasmuch  as  tliis  results  in  needless  expense. 
The  reasons  for  this  are  fully  outlined  in  Chapter  XVI. 

Preliminary  Advertising  Campaigns. — If  a  satisfactory  list  of 
dealers  is  available  or  can  be  compiled  before  the  salesman's  de- 
parture, a  preliminary  publicity  campaign  will  prove  of  great 
value.  This  should  consist  of  a  series  of  letters  and  mailing  pieces 
to  pave  the  way  for  the  representative.  An  intensive  distribution 
of  such  advertising  matter  is  far  more  effective  than  indiscrimi- 
nate mailing  to  names  that  are  taken  from  lists  without  investiga- 
tion. If  this  work  is  properly  done,  it  will  greatly  increase  the 
effectiveness  of  the  salesman's  introductory  work  and  result  in  a 
larger  percentage  of  business  than  without  such  a  campaign. 

The  Development  of  Prospects  for  Salesmen. — It  has  been  the 
experience  of  many  successful  concerns  who  have  established  busi- 
ness relations  with  Latin  America  that  it  was  preferable  to  do 
some  business  by  nmil  first,  and  to  develop  as  large  a  number  of 
prospects  as  possible  before  the  actual  sending  of  the  representa- 
tive.    The   reasons   for   this   were   twofold:      (1)    it  afforded   a 


90  EXPORTING  TO  LATIN"  AMERICA 

knowledge  of  the  goods  most  in  demand;  and  (2)  it  enabled  the 
representative  to  economize  time  and  expense  in  effecting  sales 
after  he  arrived  in  the  fields  as  he  was  able  to  devote  his  energies 
to  those  who  had  shown  an  interest  in  the  products.  In  every 
case  the  salesman  should  be  supplied  with  copies  of  the  important 
letters  that  have  passed  between  the  buyer  and  the  exporter  and 
of  the  orders  that  have  been  filled.  Scrupulous  attention  to  such 
details  will  result  in  great  saving. 

What  a  Salesman  Should  Carry. — As  traveling  in  Latin  America 
is  expensive,  care  should  be  exercised  that  useless  material  be 
omitted.  There  are  certain  requisites  which  .must  invariably  be 
carried.    These  are : 

1.  Stationery.  It  will  be  found  highly  desirable  to  carry  sta- 
tionery which  is  dignified  and  representative  of  the  firm.  If  much 
correspondence  is  to  be  done,  the  paper  used  should  be  of  light 
weight  in  order  that  the  cost  of  postage  may  be  reduced,  as  this 
is  five  cents  for  one-half  ounce.  In  order  to  avoid  waste  only 
limited  amounts  should  be  carried,  and  new  quantities  should  be 
mailed  from  time  to  time. 

2.  Advertising  Matter,  Catalogs,  Etc.  These  should  contain  in- 
formation regarding  the  products,  the  prices,  discounts  and  terms. 
The  number  carried  should  be  limited  and  only  such  quantities 
taken  that  they  may  remain  clean  until  distributed,  and  until  other 
supplies  can  be  received  at  various  points  according  to  schedule. 

3.  List  of  Dealers.  The  representative  should  be  supplied  with 
a  list  of  dealers  in  the  places  that  he  is  to  visit.  These  lists 
should  be  compiled  with  most  extreme  care  as  outlined  in  Chapter 
XVI.  Under  no  circumstances  should  there  be  omitted  the  names 
of  dealers  with  whom  business  has  already  been  done. 

4.  Schedule  of  Mailing  Points.  A  schedule  of  the  places  to  be 
visited  should  be  compiled  with  infinite  care  in  order  to  insure  the 
receipt  by  the  representative  of  all  mail  and  parcels.  This  is  of 
extreme  importance,  inasmuch  as  the  failure  to  receive  remittances 
on  which  dependence  is  placed  may  result  in  embarrassment.  The 
loss  of  valuable  information  regarding  prospective  customers  would 
also  prove  detrimental.  In  preparing  this  schedule,  care  should 
be  taken  to  allow  for  unexpected  delays  in  the  arrival  and  de- 
parture of  vessels  on  their  itineraries.  Information  regarding 
the  dispatching  of  mails  may  be  obtained  from  the   Post  Office 


TRAVELING  SALESMEN  61 

Department  at  Washington  and  New  York,  although  upon  applica- 
tion to  the  local  post  office,  postal  schedules  and  mailings  to  Latin 
American  countries  may  also  be  obtained. 

5.  The  Importance  of  Carrying  a  Cable  and  Telegraph  Code.  As 
time  is  an  important  factor  in  the  relations  between  the  United 
States  and  Latin  America,  a  code  to  reduce  the  cost  of  communica- 
tion will  be  found  invaluable.  This  may  prove  especially  useful  in 
revising  the  schedule  of  mailing  points  because  of  unexpected  de- 
velopments while  the  representative  is  in  the  field.  There  are 
a  number  of  codes  suitable  for  the  purpose,  and  one  or  more  of 
them  should  be  carried.  Once  a  code  has  been  determined  upon 
it  will  be  found  valuable  to  print  on  the  stationery  of  the  concern 
the  fact  that  it  is  used,  in  order  to  enable  the  dealers  in  Latin 
America  to  communicate  easily  with  the  exporter. 

6.  The  Importance  of  Carrying  Suffi.cient  Funds.  Because  of  the 
danger  of  nonarrival  of  mails  or  delay  in  the  transmission  of  let- 
ters, a  salesman  should  carry  funds  or  documents  which 
will  make  it  possible  for  him  to  keep  supplied  with  necessary 
money.  A  niggardly  policy  on  the  part  of  the  exporter  may  result 
disastrously.  Not  only  does  it  prove  extremely  embarrassing  to  a 
representative  in  a  foreign  country  (particularly  on  the  first  trip 
when  his  relations  are  in  formation)  to  find  himself  short  of  funds, 
but  it  reflects  greatly  upon  the  character  and  standing  of  the  house 
that  he  represents,  to  have  the  salesman  forced  to  apply  to  mer- 
chants for  loans,  and  it  is  also  inadvisable  to  incur  the  expense 
of  cable  messages  relative  to  remittances.  Unless  the  exporter  is 
willing  to  expend  a  certain  sum  of  money  for  a  given  time  and  to 
see  his  representative  safely  through,  no  matter  what  the  results, 
the  attempt  should  not  be  made  in  the  first  place. 

Methods  of  Carrying-  Money. — 1.  Letters  of  Credit.  Everywhere 
in  Latin  America  letters  of  credit  on  New  York  are  accepted  and 
cashed  without  question.  In  the  past,  in  certain  of  the  republics, 
notably  Chile,  Peru,  Bolivia,  and  Ecuador,  it  has  been  preferable 
to  use  letters  of  credit  in  pounds  sterling  on  London,  because 
thereby  the  loss  in  making  the  exchange  was  less  on  account  of 
the  circulation  of  the  pound  sterling,  which  in  many  countries 
of  Latin  America  is  legal  tender. 

2.  New  York  Bank  Drafts.  These  are  almost  invariably  ac- 
cepted at  par  by  banks  in  Latin  America  and  only  a  slight  charge 


93  EXPORTING  TO  LATIN  AMERICA 

for  the  service  is  made.  In  consequence  of  the  European  War, 
conditions  changed  to  such  an  extent  that  drafts  upon  New  York 
are  in  demand  and,  in  many  places,  at  a  premium.  In  many  in- 
stances the  charge  is  waived.  Before  cashing  drafts  the  traveler 
should  visit  several  banks  and  business  houses  in  order  to  obtain  the 
most  favorable  rate. 

3.  Express  Money  Orders.  These  have  been  found  very  con- 
venient, especially  when  carried  in  small  denominations. 

4.  United  States  Gold  and  British  Sovereigns.  This  money 
may  also  be  used,  but  the  disadvantages  of  carrying  any  quan- 
tity thereof  are  obvious.  It  is,  however,  well  to  be  supplied 
therewith. 

The  Difference  in  Moneys. — The  careful  traveler  will  bear  in 
mind  the  difference  in  the  various  moneys  of  Latin  America.  In 
traveling  from  one  republic  to  another,  care  should  be  exercised 
to  make  the  exchange  of  American  money  into  the  currency  of 
the  country,  so  as  to  have  as  little  surplus  as  possible  at  the  time 
of  departure.  This  will  insure  against  losses  in  the  exchange  of  the 
currency  of  one  country  for  that  of  another,  and  is  especially 
important  because  of  the  wide  fluctuations  in  the  currency  of  cer- 
tain of  the  republics. 

Proper  Sample  Trunks  Importajit. — The  proper  kind  of  trunks 
to  be  used  in  traveling  in  Latin  America  should  be  carefully  con- 
sidered by  the  manufacturer  or  exporter.  The  conditions  of  travel 
vary  so  widely,  and  such  rough  handling  is  received,  that  the  con- 
struction of  the  trunk  is  of  extreme  importance.  It  must  be  built 
with  a  consideration  not  only  of  its  weight,  but  also  of  the  usage 
to  which  it  will  be  subjected.  On  many  railroad  and  steamship 
lines  a  charge  is  made  for  each  pound  of  baggage  or  for  a  weight 
beyond  a  certain  very  low  maximum.  It  is  subjected  to  handling 
in  all  sorts  of  weather,  ranging  from  heavy  tropical  rain  storms 
to  the  snows  of  the  mountain  plateaus,  and  from  lighterage  on 
leaky  tugs  to  the  vicissitudes  of  muleback  transportation  through 
streams  and  on  narrow  mountain  trails. 

The  Character  of  Trunks. — If  a  salesman  is  to  visit  only  large 
cities  accessible  by  the  most  modern  steamships  with  all  the  highly 
developed  equipment  for  handling  freight,  such  as  Rio  de  Janeiro, 
Buenos  Aires,  or  Montevideo,  it  matters  little  what  may  be  the 
character  of  his  baggage.    In  striking  contrast  to  these  cities  are 


TRAVELING  SALESMEN  93 

the  remote  places  in  the  interior  of  Colombia,  Bolivia,  Chile,  or 
]\Iexico.  To  reach  them  it  is  necessary  to  resort  to  the  most 
primitive  sort  of  transportation,  such  as  oxcart  and  muleback.  Un- 
less this  is  considered,  delay  and  loss  may  result.  The  extreme 
weight  which  a  mule  is  accustomed  to  carry  is  about  70  kilos  or  150 
pounds  on  either  side — a  total  of  300  pounds.  One  large  trunk 
weighing  300  pounds  could  not  be  transported.  On  the  other 
hand,  if  this  weight  could  be  divided  into  two  trunks,  evenly  bal- 
anced, it  would  be  an  easy  matter  to  handle  them.  The  size  should 
permit  the  placing  of  trunks  on  muleback  in  a  handy  way. 

Other  Factors  to  be  Considered. — In  the  remote  places  where 
transportation  facilities  are  poor,  or  in  more  highly  developed  ports 
where  there  are  open  roadsteads  only  and  no  docking  facilities, 
trunks  are  subject  to  damage.  Especially  is  this  so  when  they 
must  be  lowered  into  a  lighter,  if,  by  mischance,  they  are  precipi- 
tated into  the  sea  instead  of  into  the  lighter.  The  carriage  on 
the  backs  of  laborers  from  the  lighter  to  the  shore  is  also  involved, 
and  if  a  trunk  is  not  properly  adjusted,  it  may  slip  into  the  water 
with  a  consequent  damage  to  contents.  As  railroad  rates  in  many 
places  are  extremely  high,  care  should  be  taken  to  have  the  trunk 
of  the  lightest  weight  possible  consistent  with  strength  and  dura- 
bility. 

Packing,  Listing,  and  Weighing  Contents. — To  expedite  clear- 
ance by  custom  house  officials  in  ports  of  entry,  it  is  desirable  that 
the  contents  of  trunks  should  be  carefully  packed  and  listed.  This 
is  essential  because  a  bond  can  be  given  for  entry  of  samples,  and 
tlie  requirements  of  officials  in  this  respect  are  extremely  strict. 
The  fact  that  a  list  is  carefully  prepared,  with  gross,  tare,  and  net 
weights  given,  will  often  inspire  such  confidence  that  the  giving 
of  bond  can  be  greatly  expedited.  The  requirements  in  weighing, 
listing,  and  packing  are  as  follows: 

1.  Weight  of  trunk  alone. 

2.  Weight  of  the  loose  compartments  or  shelves  and  containers. 

3.  Weight  of  trunk  and  containers. 

4.  Weight  of  samples  contained  in  trunk. 

5.  A  list  of  contents  under  different  headings. 

If  vacant  spaces  are  filled  with  waste  paper  or  other  material, 
weight  of  same  should  be  specified.  All  articles  should  be  care- 
fully wrapped,   and,   if   possible,   placed   inside  waterproof   ma- 


94  EXPOETING  TO  LATIN  AMEEICA 

terial.  Nothing  should  be  packed  loose.  A  list  of  all  items  in  the 
trunk  should  be  carried,  with  the  names  of  articles  in  both  Eng- 
lish and  Spanish,  and  if  the  traveler  is  going  to  Brazil,  Portuguese 
should  be  used. 

The  Importance  of  Proper  Clothing. — In  Latin  America,  appear- 
ances are  quite  as  important  a  factor  in  business  as  in  the  United 
States.  In  this  respect  the  American  salesman  should  be  extremely 
careful  and  most  considerate  of  the  opinions  of  his  prospective 
customers.  Extreme  fashions  should  be  avoided.  On  the  other 
hand,  the  importance  of  wearing  clothes  of  an  excellent  quality, 
dignified  and  appropriate,  cannot  be  too  strongly  urged.  The  trav- 
eler who  wishes  to  enter  fully  into  the  lives  of  the  people  should 
be  supplied  with  clothes  for  various  occasions,  and  as  social  func- 
tions play  an  important  part  in  the  life  of  the  Latin  American, 
evening  dress  is  indispensable.  The  wise  traveler  will  not  permit 
himself  to  be  embarrassed  because  of  lack  of  proper  wearing 
apparel. 

The  Kind  of  Clothing  in  General. — Naturally,  the  weight,  color, 
and  texture  of  the  clothing,  because  of  the  great  difference  in  cli- 
mates and  altitudes,  vary  considerably.  In  planning  a  trip  it  is 
essential  to  consider  the  time  of  the  year  in  M'hich  the  visit  is  to 
be  made,  climatic  conditions  at  the  time  of  the  visit,  the  altitude, 
etc.  Clothing  suitable  to  be  worn  in  Guayaquil,  Ecuador,  in  De- 
cember, because  of  the  great  heat  always  prevailing  there,  Avill  be 
found  impossible  in  Punta  Arenas,  Chile,  in  July,  when  heavy 
snows  are  falling  and  when  it  is  midwinter  in  those  regions.  The 
rigorous  conditions  then  prevailing  make  heavy  clothing,  over- 
coats, etc.,  absolutely  necessary.  The  traveler  must  also  be  pre- 
pared, although  traveling  within  the  same  country  at  the  same 
period  of  the  year,  for  groat  changes;  as  an  instance,  white  linen 
or  duck  suits  may  be  worn  in  Barranquilla,  Colom])ia,  but  after 
a  few  days  in  the  interior  via  the  Eiver  IMagdalona,  Avhen  the 
journey  to  the  upland  regions  of  the  capital,  Bogota,  is  com- 
menced, ordinary  clothing  will  be  found  more  comfortable,  and 
in  the  mountains,  particularly  at  nigbt,  overcoats  and  heavy  under- 
wear are  essential.  Provision  should  be  made  for  these  changes 
before  a  salesman  leaves  on  his  trip,  as  most  wearing  apparel  is 
more  ex])ensiv('  in  Lai  in  Ainericii  tliaii  at  home. 

Th£  Expense  of  a  Traveler  in  Latin  America. — Expenses  are  an 


TRAVELING  SALESMEN"  95 

important  factor  in  considering  the  sending  of  a  representative 
to  Latin  America.  In  almost  all  countries  they  are  high,  particu- 
larly if  accommodations  are  taken  in  the  better  hotels  to  which 
salesmen  should  invariably  go  to  maintain  the  dignity  of  their 
house.    A  brief  outline  of  the  principal  expenses  is  as  follows : 

1.  Hotels  and  Sample  Booms.  These  are  almost  always  high. 
The  average  rate  in  Argentina,  Brazil,  and  Uruguay  for  sample 
room,  bedchamber  and  meals,  is  $10  to  $15  per  day.  In  Ecuador, 
Colombia,  Chile,  and  Peru  the  same  accommodations  cost  about 
$8  per  day.  In  Mexico,  Central  America,  and  Cuba  the  rates  are 
lower  but  vary  according  to  the  size  of  the  town  and  the  character 
of  the  hotel.    The  average  is  $5  to  $9. 

2.  Special  Expenses.  In  many  places,  because  of  conditions,  bot- 
tled water  must  be  drunk  as  the  local  water  is  unhealthful.  This 
costs  50c  to  $1  per  day.  Baths  usually  are  charged  for  extra 
and  cost  from  20c  to  50c  each. 

3.  Transfer  and  Bus  Charges.  The  cost  of  transportation  of 
trunks  and  luggage  usually  is  higher  than  in  the  United  States. 
The  bus  or  carriage  rates  vary,  occasionally  being  lower  than  in 
this  country  but  more  frequently  higher. 

4.  Landing  Charges.  In  many  ports  where  dock  facilities  are 
lacking,  and  particularly  in  the  case  of  open  roadsteads,  the 
traveler  is  mulcted  unless  familiar  with  the  practices  of  the  boat- 
men who  often  charge  extremely  high  rates  for  carrying  passengers 
from  steamer  to  shore. 

5.  Clearance  of  Samples.  It  is  necessary,  when  samples  are 
carried  into  one  country  from  another,  to  arrange  for  their  passage 
through  the  custom  house.  Although  the  experienced  traveler  may 
be  able  personally  to  dispatch  them,  it  will  be  found  advantageous, 
when  a  considerable  number  of  samples  are  carried,  to  arrange 
the  matter  through  a  custom  house  broker.  The  charges  vary  in 
proportion  to  the  amount  of  baggage  but  must  be  considered  in  the 
expenses.  The  giving  of  tips  to  expedite  the  clearance  of  trunks  is 
a  legitimate  expense. 

6.  Bailways  and  Biver  Steamship  Fares.  In  the  South  Amer- 
ican countries  the  rates  are  almost  invariably  higher  than  in  the 
United  States,  and  in  some  countries  are  as  much  as  five  or  six 
cents  per  mile.  On  river  steamers  the  rates  are  generally  lov 
or  not  excessive,  except  in  the  case  of  shart  distances.     Extfe 


96  EXPORTING  TO  LATIN  AMEEICA 

charges  may  be  incurred  by  the  purchase  of  special  food,  water  and 
other  supplies. 

7.  Ocean  Steamsliip  Bates.  In  the  main,  rates  are  excessive, 
especially  on  the  west  coast  of  central  South  America,  and  in  par- 
ticular for  the  short  run  between  ports.  When  possible,  tickets 
should  be  bought  through  or  for  round  trips,  as  these  rates  are 
lower. 

8.  Excess  Baggage.  On  the  railways  and  on  steamships  par- 
ticularly, in  South  America,  the  rates  are  excessive.  In  some 
instances  no  excess  baggage  whatever  is  allowed  and  generally 
there  is  a  very  low  maximum.  Because  of  this  the  question 
of  baggage  should  be  carefully  considered  before  a  salesman's 
departure. 

9.  Travelers  Taxes.  In  many  places  in  Latin  America,  taxes 
are  still  collected  of  travelers  before  they  are  allowed  to  transact 
any  business.  Various  means  are  resorted  to  in  order  to  avoid  their 
payment  and  in  some  places  the  charges  are  compromised  by  the 
official  in  charge  of  the  collection.  Information  in  regard  to  this 
subject  may  be  obtained  on  page  534,  relating  to  the  taxes  charged 
in  the  various  countries. 

10.  A  Salesman's  Daily  Expense.  The  average  daily  expense 
of  a  salesman  while  traveling  may  be  calculated  at  not  less  than 
$10  per  day,  provided  the  salesman  is  careful  in  his  expenditures. 
An  average  more  likely  to  be  representative  is  $12  to  $15  per  day, 
but  when  numerous  trunks  of  samples  are  carried  the  expenses  may 
reach  $20  daily.  They  are  certain  to  be  higher  in  the  case  of  an 
inexperienced  man. 

11.  Expenses  for  Entertainment.  The  nature  of  business  in 
Latin  America  makes  essential  a  certain  sum  for  entertainment. 
To  a  far  greater  extent  than  in  the  United  States  the  entertain- 
ment of  customers  and  prospective  buyers  is  conducive  to  business, 
while  the  custom  of  offering  cigarettes  and  of  taking  refreshments 
is  almost  universal.  This,  therefore,  may  be  considered  a  perfectly 
proper  expense  item  which  is  incurred  by  the  salesman  in  the  dis- 
charge of  his  duties. 

In  Whose  Care  Mail  May  Be  Sent. — Whenever  possible,  mail 
should  be  addressed  in  care  of  a  reliable  importer,  or,  for  lack 
of  knowledge  of  such  a  firm,  in  care  of  the  American  Consul.  Ex- 
cept in  the  larger  cities,  mail  should  not  be  sent  in  care  of  hotels. 


TRAVELIXG  SALESMEN  97 

as  the  system  of  caring  for  it  is  inadequate  and  there  is  great 
opportunity  for  loss. 

An  Example  of  Noninvestigatioii. — A  concrete  example  of  the 
lack  of  study  before  a  salesman  is  sent  is  afforded  in  the  experience 
of  a  shoe  manufacturer.  Being  impressed  with  the  possibilities  of 
Latin  American  trade,  he  engaged  a  salesman  who  was  unfamiliar 
with  conditions,  and  instructed  him  to  visit  northern  South  Amer- 
ica including  Venezuela.  In  this  republic,  because  of  the  extremely 
high  tariff  on  shoes,  and  the  skill  of  the  local  shoemakers,  there 
is  absolutely  no  market  for  American  footwear.  The  result  was 
a  complete  loss  of  time  and  a  heavy  expense,  which  the  manu- 
facturer might  have  avoided.  Numerous  examples  of  this  lack  of 
study  may  be  cited. 

Anticipating  Delays  to  be  Turned,  to  Account. — Where  a  repre- 
sentative arrives  at  a  port  at  wliich  the  ship  on  which  he  is  travel- 
ing will  lie  for  several  days  discharging  and  loading  cargo,  as  is 
frequently  the  case,  particularly  on  the  west  coast,  business  may 
be  done  in  the  interim.  For  that  reason  it  is  desirable  to  obtain 
the  schedules  of  steamship  lines  which  are  to  be  used.  Where  there 
is  a  possibility  for  such  action  all  information  available  regarding 
cities  accessible  from  the  ports,  the  time  required  to  visit  them, 
and  the  business  done  therein,  should  be  sought  and  analyzed  before 
the  departure  of  the  traveler. 

The  Importance  of  Initial  Visits. — The  representative  of  an 
American  firm,  who  is  on  his  first  trip,  should  make  haste  slowly, 
and  it  will  be  found  in  the  long  run  that  this  policy  is  the  most 
economical.  By  making  a  careful  survey  of  the  situation  before 
paying  any  visits,  and  learning  definitely  the  houses  which  offer 
the  greatest  possibilities,  much  time  will  be  saved.  A  sale  to  a  mer- 
chant of  the  wrong  class  will  have  an  adverse  effect  on  the  possi- 
bilities of  introducing  an  article.  For  such  a  study  time  is  required, 
and  the  representative  should  be  expected  to  take  it. 

A  Conference  with  American  Consuls  Desirable. — The  very  com- 
mendable efforts  which  American  Consuls  are  making  to  extend 
trade  could  be  materially  assisted  by  the  cooperation  of  American 
manufacturers  and  their  representatives.  The  latter  should  in- 
variably call  upon  the  Consul  before  making  any  effort  to  obtain 
business,  as  the  latter  is  usually  in  a  position  to  give  valuable 
advice  concerning  the  commercial  situation  and  possibilities.  When 


98  EXPORTING  TO  LATIN  AMERICA 

proper  credentials  are  presented  he  is  also  able  to  assist  the  traveler 
to  obtain  an  entree  to  clubs  and  the  best  social  and  business  circles. 
This  is  a  factor  frequently  overlooked  by  American  travelers  and 
for  this  purpose  credentials  from  influential  sources  are  indis- 
pensable. 

Example  of  Misdirected  Effort. — Many  American  concerns  have 
had  to  overcome  the  effects  of  misdirected  effort  on  the  part  of 
overzealous  agents  whose  only  concern  was  the  getting  of  orders. 
In  some  cities  of  Latin  America  the  merchants  of  Oriental  races 
are  much  despised  by  the  merchants  of  other  nationalities,  not- 
withstanding the  fact  that  they  have  succeeded  in  developing  their 
business  to  no  mean  proportions.  However,  an  unwary  repre- 
sentative, who  perhaps  had  not  received  encouragement  from  the 
more  representative  concerns,  then  placed  the  sale  of  his  product 
with  the  unpopular  traders.  He  learned  too  late  that  it  was  im- 
possible to  establish  himself  again  in  the  good  graces  of  the  more 
responsible  houses  who  disapproved  of  his  action  in  selling  the 
nonrepresentative  firms. 

When  Few  Visits  Are  Desirable. — In  introducing  a  product  to 
the  Latin  American  trade,  it  is  far  more  desirable,  when  a  repre- 
sentative has  only  a  limited  amount  of  time,  to  visit  only  one 
country  and  to  make  the  proper  connections,  rather  than  to  attempt 
to  cover  the  entire  continent.  The  undue  haste  and  ill-considered 
efforts  of  many  American  firms  have  resulted  not  only  in  bitter 
disappointment,  but  in  severe  financial  loss. 

Representative  Should  Seek  Acquaintance  of  Best  Classes. — The 
representative  who  wishes  to  establish  a  permanent  market  for 
his  products  should  seek  introduction  to  the  best  people  of  the 
community  in  which  he  happens  to  be.  The  importance  of  social 
connections  and  intercourse  as  an  adjunct  to  business  in  Latin 
America  cannot  be  overestimated.  By  meeting  merchants,  bankers, 
and  officers  in  their  respective  clubs,  places  of  refreshment,  the 
theater,  race  courses,  etc.,  he  will  much  more  quickly  be  able  to 
achieve  his  purpose  than  if  such  advantages  were  not  sought. 

What  a  Salesman  Must  Absolutely  Avoid. — The  traveler  who  is 
unacquainted  with  the  life,  customs  and  ideals  of  the  Latin  Amer- 
ican people,  and  who  is  making  his  first  visit,  should  be  very 
guarded  in  his  comments  regarding  conditions  as  he  finds  them. 
All  sarcastic  reference  to  the  people,  their  institutions,  and  their 


TEAVELING  SALESMEN  99 

customs  should  be  avoided.  Under  no  circumstances  should  the 
question  of  politics  be  discussed,  for  this  is  a  topic  upon  which 
the  Latin  American  is  perhaps  more  likely  to  show  great  feeling 
than  any  other.  As  it  is  easy  to  be  drawn  into  a  discussion  of 
political  conditions,  the  astute  salesman  will  be  extremely  careful 
to  avoid  the  topic. 

The  Effect  of  Climate  on  Morals. — As  the  climate  in  general 
makes  it  likely  for  the  careless  to  fall  into  habits  which  are  much 
more  easily  resisted  in  northerly  latitudes,  it  behooves  the  visitor 
to  be  very  guarded  in  his  indulgence  in  alcoholic  stimulants.  This 
is  particularly  the  case  in  the  higher  altitudes,  and  as  the  effect 
of  stimulants  is  much  more  noticeable  there,  the  traveler  should 
endeavor  to  avoid  all  possibility  of  intoxication,  which  would  seri- 
ously affect  his  prospects  for  business.  The  traveler  should  be 
modest  in  his  demeanor  and  avoid  boasting,  particularly  about 
America,  as  this  is  very  disagreeable  to  the  Latin  American  tem- 
perament. 

Information  to  be  Exacted  of  Representative. — The  information 
which  a  representative  can  acquire  in  the  course  of  his  travels  is 
so  valuable  that  its  use  in  the  home  office  frequently  can  be  made 
to  produce  results  far  in  excess  of  actual  business  obtained  by  the 
traveler.  Frequently,  salesmen  supply  this  information,  but  as  it  is 
not  compiled  or  collated,  being  merely  in  the  shape  of  letters,  it  is 
buried  in  files  and  lost.  To  guard  against  this  possibility  the  sales- 
man should  be  furnished  sheets  of  paper,  of  light  weight,  which 
are  suitable  to  be  placed  in  loose  leaf  binders,  readily  filed  and 
consulted.  In  this  manner,  the  information  is  not  only  available 
for  the  house  and  all  those  interested  therein,  but  can  be  gone 
over  easily  with  the  representative  upon  his  return. 

The  Kind  of  Reports  to  Exact. — The  following  should  be  exacted 
of  a  representative: 

1,  A  report  on  the  list  of  names  given  a  salesman  prior 
to  departure.  This  embraces  names  of  customers,  and  pros- 
pects either  already  verified,  or  those  obtained  from  directories 
or  other  sources.  By  carefully  checking  such  a  list  and  removing 
the  "dead  wood"  in  the  shape  of  defunct,  nondesirable  concerns  or 
those  not  available  for  other  reasons,  a  valuable  list  can  be  ob- 
tained for  follow-up  work. 

2.  Eeports  of   visits  to  each  merchant,  with  a  statement  re- 


100  EXPOETING  TO  LATIN  AMERICA 

garding  the  interest  shown  by  him  in  certain  lines.     If  any  dis- 
agreements or  complaints  are  made  they  should  be  noted. 

3.  Eeport  on  general  trade  conditions  by  towns  or  sections. 

4.  Additions  to  the  mailing  list  in  the  shape  of  names  of  dealers 
who  have  not  previously  appeared  in  the  list  and  those  newly  estab- 
lished. 

A  Practical  Form  of  Report. — The  wise  export  manager  will  not 
burden  salesmen  with  requests  for  needless  information.  Only 
essentials  should  be  required  and  the  simplest  form  possible  should 
be  used.  One  that  has  been  found  very  practicable  is  5  x  9  inches, 
adapted  for  pocket  use;  these  reports,  which  are  made  on  light 
and  durable  paper,  must  be  filled  out  as  quickly  as  possible  after 
leaving  the  business  house  upon  whom  the  report  is  made,  in  order 
that  the  information  acquired  may  be  reported  while  fresh. 

Salesman's  Memoranda  for  Own  Use. — In  supplying  his  firm 
with  information  obtained,  the  representative  should  make  a  car- 
bon copy  thereof,  as  he  will  be  able  to  increase  his  selling  efficiency 
by  having  easily  available  for  successive  trips  the  information 
previously  obtained.  This  applies  not  only  to  the  names  of  cus- 
tomers and  prospective  buyers,  but  a  memoranda  of  articles  in 
which  each  dealer  happens  to  be  interested,  his  peculiarities,  his 
likes  and  dislikes. 

The  Personal  Element  Important. — A  representative  who  is 
seeking  to  develop  a  field  will  find  it  of  the  greatest  advantage  to 
keep  in  personal  touch  with  his  customers,  and  those  with  whom 
he  wishes  to  do  business.  This  can  be  done  frequently  and  in- 
expensively, not  alone  by  letters  but  by  post  cards  and  short  mes- 
sages from  other  cities  and  countries.  Such  evidence  of  interest 
shown  by  the  representative  will  yield  a  much  larger  percentage 
of  returns  than  would  the  same  energy  expended  in  the  United 
States. 

Time  Required  to  Develop  Trade. — Not  only  the  firm  that  he 
represents,  but  the  salesman  also  must  realize  that  effort  and 
time  are  required  to  develop  a  business.  The  watchword  in  all 
business  rehTtions  is  cooperation,  and  this  may  be  applied  with  par- 
ticular force  to  the  Latin  American  field.  There  must  be  coopera- 
tion, not  only  of  the  house  with  its  traveling  representative,  but  the 
salesman  must  bear  patiently  with  his  principals,  who,  being  at  a 
great  distance,  and  not  being  thoroughly  acquainted  with  the  con- 


TRAVELING  SALESMEN  lOl 

ditions  as  he  finds  them,  may  not  be  so  enthusiastic  as  he.  The 
value  of  a  first  trip  may  not  be  apparent  in  the  volume  of  busi- 
ness, but  if  carefully  taken  advantage  of,  may  eventually  yield 
great  returns.  The  information  which  a  salesman  can  acquire 
regarding  local  conditions,  methods  of  packing,  and  foreign  com- 
petition alone  will  be  richly  rewarded  upon  a  second  trip,  provided 
that  the  information  acquired  has  been  turned  to  good  account. 

Small  Orders  Desirable. — It  is  only  in  rare  instances  that  a  sales- 
man succeeds  in  obtaining  large  orders  upon  a  first  visit.  Even  in 
the  case  of  famous  American  firms  ^^■ho  enjoy  great  reputations  at 
home,  initial  orders  for  their  products  are  usually  small.  This  is 
due  to  the  conservatism  of  the  Latin  American  buyer,  who,  because 
of  many  unfortunate  past  experiences,  prefers  to  make  small  initial 
purchases  to  assure  himself  that  orders  vCdll  be  carefully  filled, 
that  instructions  regarding  packing  and  shipping  directions  are 
followed,  that  custom  house  requirements  are  observed,  and  that 
there  is  no  substitution.  A  failure  by  many  American  houses 
to  recognize  this  fact  and  a  tendency  to  pay  scant  attention  to 
first  orders  because  they  are  small  has  often  resulted  in  inability 
to  introduce  products  which  might  otherwise  have  had  a  consider- 
able success. 

Necessity  for  Special  Qualifications. — The  representative  of 
American  manufacturers  in  the  Latin  American  trade  field  should 
possess  unusual  qualifications.  So  many  important  services  may 
be  rendered  by  such  a  representative  that  the  manufacturer  must 
be  far  more  exacting  than  in  the  appointment  of  agents  in  the 
domestic  market.  One  of  the  most  important  duties  is  that  of 
determining  the  credit  standing  of  the  dealer.  In  Latin  America 
credit  information  is  far  more  easily  obtained  at  first  hand  than 
by  correspondence  and  the  representative  should  be  not  only  com- 
petent but  trustworthy,  so  that  the  fullest  credence  may  be  given 
his  reports  regarding  the  credit  standings  of  dealers.  The  appoint- 
ment of  local  and  traveling  agents  also  frequently  falls  to  his  lot 
and  this  likewise  requires  ability. 

The  Qualifications  of  a  Representative. — The  traveler  who  un- 
dertakes the  representation  of  American  houses  in  the  Latin  Amer- 
ican trade  fields  must  expect  to  find  many  unpleasant  conditions 
and  must  be  prepared  to  make  serious  sacrifices  of  personal  com- 
fort.   This  is  especially  true  in  the  remote  places.    He  must  also 


103  EXPORTIXG  TO  LATIN"  AMERICA 

realize  that  because  of  the  conditions  his  efforts,  while  the  founda- 
tion of  the  business  is  being  laid,  will  probably  not  result  in  a 
sufficient  volume  of  business  to  justify  his  expenses,  and  much 
of  his  work  will  bear  fruit  only  in  the  future. 

Men  of  Hig^h  Character  Needed. — Because  the  cost  of  traveling 
and  living  are  both  steadily  increasing,  it  is  inadvisable  for  manu- 
facturers to  select  low-salaried  representatives.  Many  successful 
concerns  have  found  it  advantageous  to  employ  graduates  of  uni- 
versities, particularly  of  those  institutions  which  have  schools  of 
business  administration  such  as  Columbia  University,  Harvard 
University,  etc.  The  experienced  travelers  of  export  commission 
houses,  also,  are  frequently  chosen  where  important  introductory 
work  is  necessary. 

Importance  of  Personality. — To  a  far  greater  degree  than  in  the 
United  States  is  personality  a  requisite  of  most  efficient  sales- 
manship in  the  Southern  Eepublics.  The  possibility  for  intimate 
relationship  with  Latin  American  merchants  is  far  easier  than 
in  North  America.  The  representative  who,  because  of  his  accom- 
plishments, intelligence,  and  acquaintance  with  literature,  art, 
music,  etc.,  is  invited  to  the  homes  of  his  customers  is  naturally  in 
a  position  to  command  a  far  larger  share  of  the  business  than  would 
be  possible  without  intimate  friendship.  The  well-to-do  merchant 
of  Latin  America,  native  or  European,  sets  no  bounds  upon  his 
hospitality  to  the  cultured  representative.  Invitations,  too,  are 
lavishly  extended  to  entertainments  of  every  sort  and  the  privi- 
leges of  clubs  are  freely  granted.  The  most  efficient  representative 
will  be  able  to  enter  into  this  life  to  the  fullest  degree  and  should 
be  able  to  acquit  himself  creditably. 

The  Influence  of  Social  Life. — In  connection  with  the  subject  of 
personal  relations  the  value  of  social  intercourse  must  be  em- 
phasized. The  most  prosperous  travelers  are  often  those  who,  after 
business  hours,  frequent  the  places  where  they  can  meet  their 
customers  and  enter  generally  into  the  social  life  of  the  communi- 
ties in  which  they  find  themselves.  Very  often  the  friendships 
thus  formed  are  productive  of  more  business  than  can  possibly 
be  obtained  by  insistent  salesmanship.  Not  only  the  time,  but 
the  expenditure  of  money  necessarily  entailed  by  this  intercourse, 
will  be  found  well  spent. 

Customs  to  be  Studied. — The  American  commercial  traveler  who 


TEAVELING  Sx^LESMEN  103 

is  making  his  first  visit  to  the  Latin  American  countries  should 
study  carefully  all  the  customs  of  business  and  social  life.  They 
are  not  alone  interesting  in  themselves  but  will  prove  extremely 
valuable  in  furthering  sales.  Moreover,  the  observance  of  these 
customs  will  enable  the  traveler  much  more  quickly  to  gain  a 
foothold  than  would  be  the  case  were  this  essential  feature  neg- 
lected. 

The  Treatment  of  Representatives. — Because  of  the  unusual  con- 
ditions which  the  traveling  representative  faces,  and  the  absolute 
necessity  for  maintaining  his  own  dignity  as  well  as  the  reputation 
of  the  house  he  represents,  his  expenses  for  entertainment  will  be 
found  heavier  than  in  the  domestic  field.  Exporters  should  not 
scrutinize  such  expense  accounts  too  closely,  particularly  if  the 
traveler  is  effecting  good  sales.  It  must  be  remembered,  that  the 
salesman,  having  been  selected  with  care,  is  worthy  of  confidence 
and  should  be  trusted  not  to  be  extravagant.  The  trials  of  the 
representative  under  the  most  favorable  conditions  are  very  great, 
and  he  should  be  encouraged  in  every  possible  way  and  nothing 
should  be  allowed  to  dishearten  him. 

The  Treatment  of  Salesmen's  Correspondence. — The  suggestions 
made  by  representatives  in  their  reports  should  be  carefully  con- 
sidered and  all  correspondence  should  be  accorded  thorough  atten- 
tion. Inquiries  regarding  prices  or  other  items  should  be  an- 
swered promptly,  and  fully.  The  suggestions  which  are  made  as  a 
result  of  personal  observation  should  be  treated  with  consideration 
inasmuch  as  the  competent  traveler  knows  whereof  he  writes. 

Making  "Missionary"  Work  Productive. — In  many  instances  the 
work  of  traveling  representatives  on  a  first  visit  is  purely  "mission- 
ary" in  character,  but  if  advantage  is  taken  thereof,  it  can  be 
turned  to  good  account.  To  that  end  a  simple  but  thoroughly 
effective  system  of  frequent  letters  of  follow-up  nature  should  be 
directed  to  the  houses  upon  whom  the  salesman  reported.  The  fact 
that  the  advantages  of  the  manufacturer  have  been  presented  by  a 
personal  representative  offers  a  means  of  establishing  intimate 
relations  and  the  wise  manufacturer  will  seek  to  profit  thereby.  A 
single  display  of  samples  to  a  Latin  American  buyer  and  a  strong 
presentation  of  the  selling  points  of  an  article  by  a  representative 
are  far  more  effective  than  a  long  series  of  letters  without  this 
personal  touch. 


104  EXPGETING  TO  LATIN  AMEEICA 

Other  Advantages  of  Competent  Representatives. — Not  alone  for 
the  duties  outlined  is  a  salesman  of  such  importance  to  his  firm, 
but  where  it  is  advisable  to  appoint  general  or  local  agents  for 
the  sale  and  distribution  of  manufactures,  a  competent  repre- 
sentative can  render  his  house  invaluable  service.  By  a  study  of 
conditions  and  a  consideration  of  all  the  factors  involved,  a  capable 
traveler  can  frequently  select  as  local  agents  men  whom  it  would 
be  impossible  to  engage  by  correspondence.  Another  service  which 
is  of  extreme  importance  is  that  of  determining  the  credit  to  which 
a  dealer  is  entitled.  In  Latin  America,  such  information  is  far 
more  easily  obtained  at  first  hand  than  by  correspondence.  For 
this  reason  alone,  the  exporter  should  insist  that  his  representative 
be  most  competent  in  order  that  the  fullest  credence  may  be  given 
his  reports  regarding  credit  standing  of  the  dealers.  In  the  chapter 
relating  to  credits  and  collections,  the  method  to  be  pursued  is  gone 
into  fully. 

GENERAL  AND  LOCAL  AGENTS 

Introduction. — Only  a  failure  to  understand  conditions  in  the 
Latin  American  market  can  account  for  the  many  misdirected 
efforts  of  American  houses.  It  is  inexplicable  why  business  men 
whose  success  in  the  domestic  field  has  been  based  on  highly  de- 
veloped personal  salesmanship  should  attempt  to  win  trade  in 
Latin  America  by  the  occasional  mailing  of  a  catalog.  This  seems 
even  more  absurd  in  the  case  of  cities  like  Buenos  Aires,  Eio  de 
Janeiro,  or  Santiago  de  Chile,  where  business  methods  are  as 
highly  developed  as  in  the  cities  of  New  York  or  Chicago.  In 
these  large  cities,  as  in  smaller  ones  also,  importers  desire  to  in- 
spect samples  and  as  trade  conditions,  because  of  style  changes,  the 
need  for  demonstrators,  etc.,  become  more  complex,  the  most  inten- 
sive methods  are  required  to  obtain  trade.  The  peculiarities  of  cer- 
tain lines  of  business  have  made  it  desiral)le  that  stocks  be  carried 
in  the  principal  centers  in  order  to  insure  quick  deliveries  of 
frequent  purchases. 

Why  Distributing  Agencies  Aid. — This  method  has  been  fol- 
lowed with  consi(k'ral)le  success  by  numerous  foreign  firms,  includ- 
ing some  American  houses,  whose  sales  are  made  to  the  smaller 
shopkeepers.     The  latter  cannot  afford  to  import  direct  but  the 


GENEEAL  AND  LOCAL  AGENTS       105 

volume  of  their  purchases  is  nevertheless  very  considerable.  In 
many  instances,  however,  it  will  be  found  that  business  can  most 
easily  be  developed  by  means  of  agencies  even  when  stocks  are  not 
carried  in  the  distributing  centers.  Agencies  are  of  two  kinds: 
general  and  local.  The  former  are  usually  for  a  certain  district, 
which  may  lie  entirely  within  one  country  or  embrace 
parts  of  several  republics.  The  latter  are  for  a  definite  smaller 
territory,  usually  one  city  or  community.  The  principle  underlying 
the  appointment  of  agents  is  that  of  frequent  visits  in  order  to 
keep  in  constant  personal  touch  with  buyers,  as  a  local  man  can- 
vassing the  field  continually  can  undoubtedly  effect  larger  sales  than 
a  traveler  who  comes  infrequently. 

How  Agents  May  be  Obtained. — Assuming  that  the  merchant 
has  made  a  careful  study  of  the  possibilities  of  his  product,  de- 
termined that  the  agency  system  is  the  best  to  follow,  and  logically 
divided  his  territory,  his  next  problem  will  be  that  of  obtaining 
aggressive,  reliable  agents.  This  may  be  done  in  a  number  of 
ways. 

The  Most  Satisfactory  Method. — Naturally,  the  best  means  of 
obtaining  local  agents  is  for  the  American  business  man  or  his 
export  manager  to  visit  the  country,  study  the  conditions,  and  after 
careful  consideration,  appoint  the  agent  who  seems  most  de- 
sirable. 

Agents  May  be  Obtained  by  Correspondence. — The  American 
exporter  who  cannot  himself  go,  or  who  cannot  send  a  com- 
petent representative,  may  obtain  local  or  traveling  agents  in 
a  number  of  ways.  The  following  are  some  of  the  principal 
methods : 

1.  His  general  traveling  representative  may  make  a  personal 
investigation  and  appoint  the  agent. 

2.  The  manufacturer  may  advertise  in  local  newspapers  and, 
after  obtaining  references  of  the  correspondent,  make  the  appoint- 
ment. 

3.  He  may  secure  the  agent  as  a  result  of  the  latter's  direct 
application. 

4.  He  may  arbitrarily  select  names  of  firms  who  advertise  in 
local  directories  their  desire  for  agencies. 

5.  He  may  have  been  given  the  names  of  prospective  agents 
by  United  States  Consuls  to  whom  he  has  written. 


106  EXPOETING  TO  LATIN  AMERICA 

6.  He  may  have  had  correspondence  with  commercial  organiza- 
tions who  have  suggested  names. 

7.  He  may  have  obtained  suggestions  from  the  "Daily  Commerce 
Eeports." 

8.  He  may  obtain  them  from  bulletins  of  the  National  City 
Bank,  export  papers,  etc. 

Points  to  Emphasize  in  Correspondence. — The  manufacturer 
who  contemplates  the  appointment  of  local  agents  should  make 
clear  in  all  advertisements  or  letters  relative  to  the  subject  the  fol- 
lowing items :  his  facilities  for  exporting ;  his  ability  properly  to 
care  for  export  business ;  all  advantages  of  his  products.  Simultane- 
ously he  should  exact  references,  and  make  clear  to  the  applicant 
his  exact  position  regarding  commissions,  terms,  territory,  prices, 
discounts,  etc.  Every  factor  should  be  considered  in  order  that 
no  time  may  be  lost  in  needless  correspondence. 

Caution  Necessary  in  the  Establishment  of  General  Agencies. — 
The  possibilities  for  the  sale  of  a  given  product  may  be  so  adversely 
affected  by  an  error  in  judgment  that  the  manufacturer  should 
approach  this  problem  with  the  greatest  caution.  Following  are 
some  of  the  factors  to  be  considered,  and  the  pitfalls  suggested  by 
each  should  be  studiously  avoided : 

1.  The  Vastness  of  the  Territory.  A  firm  may  apply  for  the 
representation  of  product  in  a  territory  whicli  will  be  so  ex- 
tremely large  that  it  is  impracticable  to  be  covered  from  one  place. 
As  a  specific  instance  may  be  cited  the  application  of  a  concern 
in  Eio  de  Janeiro  for  the  entire  republic  of  Brazil.  If  a  manu- 
facturer were  to  grant  an  agency  for  the  Brazilian  field  and  to 
do  business  only  through  that  agency,  it  would  present  a  very 
peculiar  anomaly  if  an  order  were  received  from  Manaos.  The 
latter  is  a  point  on  the  river  Amazon,  not  far  from  Iquitos,  Peru, 
about  3500  miles  from  the  coast.  To  reach  Manaos  from  Eio  de 
Janeiro  requires  alone  three  weeks'  time.  The  absurdity  of  such 
an  arrangement  is  apparent.  A  country  like  Brazil  should  be  di- 
vided into  several  territories  as  suggested  in  the  Appendix.  Fur- 
thermore, various  sections  of  a  country  are  utterly  different.  Care 
should  be  taken  to  ascertain  exact  conditions  and  apportion  the 
territory  accordingly. 

2.  Other  Representations  Held  by  Agents.  This  is  an  important 
factor  for  many  reasons  and  one  which  will  become  evident  upon 


GENERAL  AND  LOCAL  AGENTS       10^ 

study.  Other  products  sold,  because  of  their  dissimilarity  to  the 
new  merchandise,  will  make  it  more  difficult  for  the  representative 
to  introduce  the  latter.  The  manufacturer  must  be  extremely 
careful  to  convince  himself  that  application  for  a  representation 
is  not  forwarded  merely  with  the  intention  of  preventing  the  sale  of 
his  product  which  might  interfere  with  that  of  a  similar  one  already 
being  sold  by  the  prospective  agency. 

3.  Nationality  of  the  Agent.  This  is  far  more  important  than 
appears  on  the  surface,  and  is  particularly  so  in  the  case  of  ma- 
chinery. It  is  obvious  that  if  the  agent  is  a  German,  and  is  used 
to  selling  only  German  machines  and  tools,  it  may  be  difficult  for 
him  to  adapt  himself  to  the  American  ways  and  methods. 

4.  Organization.  An  agent  may  frequently  be  perfectly  reli- 
able but  because  he  lacks  an  organization  to  effect  proper  dis- 
tribution of  a  given  product,  the  ambitions  of  a  manufacturer 
for  adequate  distribution  in  a  certain  district  may  not  be  real- 
ized. 

5.  Multiplicity  of  Merchandise.  A  representative  who  has  too 
many  kinds  of  agencies  cannot  devote  as  much  time  to  a  certain 
line  as  one  who  would  make  it  his  principal  business.  Further- 
more, if  the  variety  of  products  handled  is  too  dissimilar,  it  is 
unreasonable  to  expect  results.  The  general  agency  whose  prin- 
cipal business  is  the  selling  of  machinery  cannot  be  expected  to  be 
competent  in  selling  jewelry,  nor  could  agricultural  implements 
and  confectionery  be  well  handled  together,  while  surgical  instru- 
ments and  leather  would  likewise  prove  a  disappointing  combi- 
nation. 

Factors  Affecting  Local  Agents. — Before  granting  a  local  agency 
a  manufacturer  should  assure  himself  that  the  agent  has  a  knowl- 
edge of  the  product  it  is  desired  to  introduce  or  distribute.  The 
standing  of  the  agent  both  socially  and  commercially  must  be  con- 
sidered, his  ability  should  be  of  the  highest,  and  the  other  repre- 
sentations he  carries  should  in  no  wise  conflict  with  or  affect  the 
new  one  granted.  He  should  possess  a  wide  acquaintanceship  with 
the  dealers  or  users  of  the  product,  and  his  facility  for  covering  the 
territofy  properly  should  be  made  apparent  to  the  manufacturer 
before  the  latter  reaches  his  decision.  The  possible  attitude  of  the 
local  agent  toward  his  principals  must  also  be  given  consideration, 
and  the  exporter  must  make  sure  that  his  representative  will  not 


108  EXPORTING  TO  LATIN  AMERICA 

take  sides  with  local  merchants  against  the  firm,,  as  is  sometimes 
done  by  unprincipled  men. 

Definite  Understanding  Necessary. — In  engaging  a  local  agent 
the  American  house  must  be  very  explicit  in  its  letter  of  authoriza- 
tion. The  duties,  liabilities,  and  authority  of  the  agent  must  be 
explicitly  stated  in  order  that  no  attempt  may  be  made  to  make 
collections  for  the  account  of  the  American  shipper  and  to  pocket 
the  proceeds.  In  the  contract  should  also  be  stated  fully  the  obliga- 
tions of  the  agent  as  to  competing  lines  handled  by  him,  so  that 
the  American  house  may  not  be  subjected  to  loss  because  of  be- 
trayal of  confidence,  or  other  reasons. 

Liability  of  Agent. — Occasionally  an  American  firm  depends 
exclusively  upon  its  resident  local  agent  for  credit  reports,  relying 
upon  the  knowledge  of  local  conditions  which  its  agent  may  pos- 
sess. It  often  happens  that  the  local  agent  guarantees  to  reim- 
burse the  American  firm  in  the  event  that  payment  is  not  made 
by  its  customer. 

In  Europe  such  responsibility  is  called  del  credere.  When  such 
arrangements  are  made  the  business  house  must  be  doubly  careful 
lest  it  become  the  victim  of  its  agent's  dishonesty  or  of  his  lack 
of  judgment. 

Advantages  of  Special  Agents. — When  a  business  of  good  vol- 
ume is  being  done,  it  is  almost  essential  that  the  exporter  arrange 
for  special  representation.  Such  representation  will  be  found  par- 
ticularly useful  when  shipments  are  made  against  documents  that 
must  be  accepted  and  paid.  When  some  unforeseen  circumstance 
occurs  and  drafts  cannot  be  immediately  accepted  the  American 
shipper  may  frequently  avoid  heavy  loss  through  an  arrangement 
which  is  known  as  "in  case  of  need."  These  words  on  a  draft  mean 
that  in  the  event  of  nonpayment  the  individual  (or  firm)  whose 
name  appears  on  the  draft  marked  "to  notify  in  case  of  need"  is  ad- 
vised of  the  circumstances  and  can  communicate  direct  with  the 
shipper  or  himself  take  care  of  the  documents.  This  naturally 
depends  upon  the  arrangements  made  witli  the  American  house. 

Cooperation  with  Agents. — As  in  all  couimcrcial  relations,  abso- 
lute cooperation  between  the  manufacturer  and  the  agent  i«  essen- 
tial. Following  are  a  few  concrete  suggestions  for  such  coopera- 
tion : 

1.    Obtaining  Prospects  for  the  Agents.     This  may  be  done  by 


GENEEAL  AND  LOCAL  AGENTS  109 

correspondence  with  dealers  whose  names  are  furnished  by  the 
agents  and  who  are  advised  of  the  appointment  of  the  latter  and 
of  the  fact  that  they  have  samples,  etc. 

2.  Circulation  of  Advertising  Matter.  The  work  of  the  agent 
can  be  much  simplified  by  the  circulation  of  appropriate  advertis- 
ing material.  This  will  have  a  particularly  good  effect  in  that  it 
will  stimulate  the  agent  to  greater  activities  when  he  realizes  that 
the  house  he  represents  is  disposed  to  help  him  in  every  possible 
way. 

3.  Inquiries  Referred  to  Agent.  Every  inquiry  received  from 
the  territory  of  an  agent  should  be  referred  to  him.  Intensive 
work  on  the  part  of  an  agent  to  whom  prospects  are  referred  will 
likely  result  in  increase  of  business.  The  policy  of  some  manu- 
facturers in  withholding  notices  of  orders  received  direct,  and 
denying  commissions,  is  extremely  shortsighted. 

4.  FoUoiv-up  WorJc.  Efficient  follow-up  work  will  prove  ex- 
tremely valuable.  This  should  concern  itself  with  merchants  previ- 
ously sold  as  well  as  with  prospective  purchasers  of  whom  the  manu- 
facturer is  advised  by  the  agent. 

5.  Copies  of  All  Correspondence.  A  memorandum  of  advertis- 
ing matter  and  catalogs  mailed,  in  addition  to  copies  of  correspon- 
dence, should  be  supplied  to  the  agent.  This  attention  will  not 
only  be  greatly  appreciated  by  the  representative,  but  it  will  be 
found  productive  of  greater  efficiency. 

The  Value  of  Cooperation. — The  greatest  results  in  the  develop- 
ment of  trade  with  Latin  America,  no  matter  what  method  is 
adopted,  will  be  obtained  by  cooperation.  The  wise  exporter  will 
seek  by  every  possible  means  to  cooperate  intensively  with  local 
or  general  agents,  with  importers,  and,  in  the  final  analysis,  with 
the  ultimate  consumer  or  user  of  his  products. 

Clearing  Samples. — One  of  the  sources  of  most  frequent  com- 
plaint, particularly  by  salesmen  who  are  making  their  first  visit  to 
a  Latin  American  country,  is  the  difficulty  of  clearing  samples  that 
may  be  carried.  A  failure  to  approach  this  problem  from  the  right 
standpoint  often  causes  delays  and  annoyances.  A  rule  which 
should  be  followed  by  all  interested  in  this  matter  is  the  proper 
treatment  of  customs  officials  charged  with  the  collection  of  duties. 
The  Latin  American  cannot  be  browbeaten  or  hurried ;  he  should 
be  treated  with  the  utmost  urbanity,  politeness,  and  consideration, 


110  EXPOETING  TO  LATIN  AMERICA 

This  method  will  result  in  a  saving  of  time  and  will  redound  to 
the  advantage  of  all  who  have  business  with  customs  officers. 

Assistance  of  Custom  House  Brokers. — The  laws  relating  to 
imports  and  the  exports  passing  through  the  custom  houses  are 
very  similar  in  all  the  countries.  A  salesman,  however,  who  car- 
ries samples  for  which  he  wishes  to  give  bond,  should  imme- 
diately consult  a  reputable  custom  house  broker.  The  latter  usually 
knows  all  the  requirements  and,  having  an  acquaintance  with  the 
officials,  can  generally  secure  the  entry  and  clearance  of  samples 
much  more  quickly  than  the  American  alone. 

Clearing'  Samples  Under  Bond. — The  custom  house  regulations 
in  many  Latin  American  countries  have  very  liberal  stipulations 
regarding  samples  carried  by  commercial  travelers.  Before  a  trav- 
eler starts  on  a  journey  he  should  carefully  prepare  a  memorandum, 
practically  in  the  same  manner  as  though  it  were  an  invoice.  On 
this  document  should  be  specified:  (1)  an  exact  description  of 
the  samples  carried;  (2)  their  value;  and  (3)  their  gross,  legal,  and 
net  weight. 

Such  a  memorandum  will  make  it  possible  to  supply  customs 
officials  quickly  with  a  description  of  the  baggage  carried,  and  will 
expedite  its  clearance  when  no  regular  consular  invoice  is  re- 
quired. 

Consular  Invoice  for  Samples. — Of  even  greater  value  is  a  con- 
sular invoice  covering  the  samples  carried  and  containing  a  full 
itemized  description  thereof.  On  such  an  invoice  there  should  be 
specified  the  exact  character  of  the  samples,  including  the  combina- 
tion of  materials  therein,  the  net,  legal,  and  gross  weights,  etc. 
This  will  assist  gTeatly  in  clearing  samples  through  custom  houses 
and  will  be  found  generally  useful.  If  the  traveler  is  visiting 
various  republics  the  following  concrete  suggestions  will  be 
valuable : 

If  departure  is  taken  from  the  United  States  to  Cuba  the 
consular  invoice  should  be  made  by  the  Cuban  Consul.  When  leav- 
ing Cuba  for  Venezuela,  the  Consul  of  Venezuela  in  Havana  should 
certify  another  invoice.  This  method  should  be  followed  from 
one  country  to  another. 

Arranging  Bond  for  Samples. — In  moat  of  the  republics  bond 
may  be  given  for  samples.  This  bond  provides  that  the  samples 
are  to  be  withdrawn  from  the  country  within  a  stated  length  of 


GENERAL  AXD  LOCAL  AGENTS  111 

time.  The  signature  of  a  reputable  merchant  is  usually  sufficient 
to  obtain  the  bond,  although  in  some  countries  it  is  necessary  to 
arrange  for  the  payment  of  the  duties  in  currency.  When  the 
samples  are  withdrawn  for  the  purpose  of  being  taken  to  an- 
other country,  the  duties  thus  deposited  are  refunded.  The  duties 
and  customs  differ  so  widely  in  the  different  countries  that  they  can- 
not be  stated  in  detail  here.  AVhen  a  journey  to  Latin  America 
is  contemplated  and  it  is  decided  to  learn  conditions  regarding  the 
clearance  of  samples,  the  information  may  be  obtained  as  follows: 

1.  From  the  Consulates  General  of  the  various  republics,  in  New 
York  City. 

2.  From  the  Bureau  of  Foreign  and  Domestic  Commerce  of  the 
Department  of  Commerce,  Washington,  D.  C,  or  its  agents  in  the 
various  branch  offices. 

3.  From  representative  firms  in  the  different  countries. 

4.  From  commercial  organizations  such  as  the  National  Associa- 
tion of  Manufacturers,  etc. 

Personal  Attention  to  Baggage. — In  clearing  baggage  through  a 
custom  house  it  is  absolutely  essential  to  give  the  matter  personal 
attention.  The  experienced  traveler  will  not  intrust  the  clearance 
to  a  subordinate  but  will  himself  oversee  it.  This  personal  attention 
includes : 

1.  The  location  of  the  baggage. 

2.  Attending  to  its  clearance. 

3.  Seeing  that  it  is  properly  placed  on  train,  steamship,  or  other 
conveyance. 

Taxes  on  Commercial  Travelers. — A  source  of  much  trouble  and 
annoyance  in  many  places  in  Latin  America  is  the  matter  of  taxes 
on  commercial  travelers.  This  is  a  difficult  subject  because  of  the 
wide  variation  in  application.  Although  the  tax  in  certain  of  the 
countries  is  nominally  a  very  heavy  one,  it  is  rarely  collected  in 
full,  inasmuch  as  the  payment  is  frequently  a  matter  of  compromise 
between  the  applicant  and  the  official  to  whom  the  privilege  of  col- 
lection has  been  awarded.  In  many  places  no  tax  whatever  is 
exacted,  notwithstanding  the  fact  that  there  is  a  law  authorizing 
its  collection. 

How  Payment  Is  Avoided. — In  those  places  where  the  municipal 
officials  are  strict  in  the  enforcement  of  the  law,  many  travelers 
overcome  the  difficulty  by  writing  in  advance  of  their  coming  to 


11^  EXPORTING  TO  LATIN  AMEEICA 

one  of  the  principal  importing  houses.  This  house,  by  reason  of 
the  taxes  it  pays  and  the  license  for  doing  business  it  has  obtained, 
assumes  charge  of  the  samples,  and  while  the  traveler  is  in  the 
country  or  district  practically  arranges  that  he  may  represent  it.  In 
this  manner  payment  of  the  license  may  be  avoided.  It  is  highly 
desirable  for  the  traveling  salesman  to  take  every  precaution  in  this 
respect  and  he  can,  by  questioning  fellow  travelers  and  merchants 
in  adjacent  towns,  ascertain  the  conditions  which  prevail  in  other 
places  to  be  visited.  A  conference  with  the  American  Consul  imme- 
diately upon  arrival  is  a  wise  precaution  and  no  effort  to  sell  should 
be  made  before  that  is  done.  The  exact  conditions  governing  the 
payment  of  license  by  commercial  travelers  are  different  in  almost 
all  Latin  American  republics.     (See  page  534.) 

Some  Travelers'  Taxes. — In  many  of  the  republics  a  national  tax 
is  exacted  and  a  further  tax  is  assessed  in  the  provinces.  In  the 
Argentine  Republic,  there  is  a  national  tax  of  $300  paper  or  about 
$50  gold,  and  there  are  other  provincial  taxes.  In  six  states  of 
Brazil,  the  taxes  vary  from  about  $35  to  $50  American  gold  or 
about  $200  Brazilian  paper.  In  Ecuador  the  tax  on  traveling  sales- 
men is  $50  gold  per  year.  In  Salvador  the  tax  exacted  is  100 
pesos  for  a  stay  not  to  exceed  two  months.  For  a  stay  in  excess 
of  that  period  a  monthly  tax  of  25  pesos  is  to  be  paid  by  the 
traveler  to  the  custom  house  upon  departure.  In  the  republic 
of  Panama  the  tax  is  10.  The  taxes  exacted  of  traveling  repre- 
sentatives in  the  republic  of  Bolivia  vary  according  to  the  com- 
munity. The  collection  thereof  is  generally  "farmed  out"  and  col- 
lectors frequently  accept  less  than  the  amounts  which  they  are 
authorized  by  law  to  charge.  The  taxes  in  the  principal  communi- 
ties are  as  follows:  La  Paz,  200  to  300  Bolivianos;  Cochabamba, 
1000  Bolivianos;  Oruro,  250  Bolivianos;  Potosi,  200  Bolivianos; 
Sucre,  300  Bolivianos;  Uyuni,  250  Bolivianos;  Santa  Cruz,  400  to 
800  Bolivianos ;  Tarija.  200.    Tlio  Boliviano  equals  .389. 

Population  Sometimes  Misleading. — Before  determining  upon 
the  establishment  of  an  agency  and  the  extent  of  territory  to  be 
allotted  to  it,  the  manufacturer  should  thoroughly  familiarize 
himself  with  the  existing  conditions  and  the  possibilities  for  the  sale 
of  his  product.  There  are  many  factors  whicli  may  prove  ex- 
tremely misleading,  making  analysis  indispensable.  An  example 
of  such  factors  is  the  population  of  a  country.     The  fact  that  a 


GEKEEAL  AND  LOCAL  AGENTS  113 

large  number  of  inhabitants  are  reported  in  a  certain  republic 
does  not  prove  that  a  certain  consumption  or  sale  per  capita  is 
possible.  As  an  instance  may  be  cited  the  case  of  Mexico  whose 
population  is  10,000,000.  Of  this  number  only  4,500,000  may  be 
considered  as  probable  buyers  of  America's  manufactures.  This  ap- 
plies with  equal  force  to  such  countries  as  Guatemala,  Bolivia, 
Ecuador,  etc.,  while  in  Costa  Rica,  Argentina,  and  Brazil  the  situa- 
tion is  very  different.  This  matter  is  also  important  from  the 
standpoint  of  exactions  required  when  agencies  are  granted.  Manu- 
facturers have  often  refused  to  grant  application  for  agencies 
because  the  applicants  refused  to  agree  to  import  a  quantity  of  a 
product  which  was  out  of  proportion  to  the  resources  of  a  com- 
munity. 


CHAPTER  VII 

PLANNING  A  SALES  TRIP.     CONDITIONS  OF  TRAVEL  IN  LATIN 

AMERICA 

Introduction. — The  value  of  personal  contact  in  the  develop- 
ment of  business  is  widely  recognized.  The  establishment  of 
more  intimate  and  profitable  relations  between  the  exporters  of  the 
United  States  and  the  importers  of  Latin  America  can  undoubtedly 
be  hastened  by  an  exchange  of  visits  from  the  heads  of  business 
houses.  In  the  past,  commercial  organizations  have  laid  most 
stress  upon  the  visits  of  Latin  American  merchants  to  this  country, 
and  the  only  organized  effort  for  tours  of  Latin  America  has  been 
in  the  appointment  of  commissions  or  groups  of  manufacturers  to 
visit  the  southern  countries.  The  value  of  the  personal  visits  of 
executives  to  Latin  America  cannot  be  exaggerated  as  the  mer- 
chants of  those  republics  are  particularly  appreciative  of  the  com- 
pliment implied  in  the  personal  call  of  the  head  of  a  large  company. 
Such  visits  result  in  a  greater  intimacy  and  enable  the  American 
executive  to  obtain,  at  first  hand,  information  which  would  other- 
wise be  hard  to  secure. 

Vacation  Trips  Enjoyable. — Business  men  have  come  to  look 
upon  vacations  as  indispensable  to  efficiency.  The  time  they  have 
usually  given  to  summer  resorts  or  European  trips  may  be  spent 
with  equal  enjoyment  and  with  far  greater  profit  in  visits  to  Latin 
American  countries.  Many  of  the  most  important  cities  of  Latin 
America  have  very  delightful  climates  and  in  the  coast  cities,  where 
tropical  conditions  exist,  the  days  and  even  the  nights  are  fre- 
quently cooler  than  the  summers  of  the  American  cities  of  the 
temperate  zone.  The  tableland  of  Mexico  is  particularly  pleasant 
during  summer,  as  are  all  the  interior  cities  of  Central  America, 
whose  elevation  makes  the  climate  very  pleasant.  The  southerly 
part  of  South  America,  including  Uruguay,  almost  the  entire  Ar- 
gentine Republic,  the  southern  part  of  Brazil,  and  the  greater  part 
of  Chile  and  Paraguay,  lie  in  the  South  Temperate  Zone.   The  equa- 

114 


PLANNING  A  Sx^LES  TEIP  115 

torial  republics,  particularly  Ecuador,  Colombia,  Venezuela,  Peru, 
and  Bolivia,  also  possess  high  plateau  regions  in  which  the  tem- 
perature is  that  of  the  American  Indian  summer,  and  often  cooler. 
The  visitor  to  Ecuador  traveling  from  Guayaquil  to  Quito  on  a  trip 
inland  will  discover  that  in  five  hours  on  muleback  the  climatic 
conditions  undergo  a  greater  change  than  in  a  trip  of  six  days 
north  or  south  of  Guayaquil  on  a  steamer.  Even  in  Cuba  and  Porto 
Rico  the  summers  are  very  agreeable.  In  the  upland  capitals, 
the  range  of  the  thermometer  is  between  50  and  70  degrees  Fahren- 
heit. The  factor  of  greater  importance  than  heat  in  the  tropical 
countries  is  the  moisture  of  the  air  and  the  heavy  rainfall. 

The  Humboldt  or  Antarctic  Current  cools  the  air  and  water  along 
the  northern  part  of  the  western  coast  of  South  America  to  such 
an  extent  that  even  bathing  is  uncomfortable.  The  scenery  in 
almost  every  one  of  the  Latin  American  countries  is  of  unsurpassed 
beauty  and  for  midwinter  visits  more  delightful  excursions  can 
hardly  be  imagined.  Trips  to  these  republics  can  be  of  varied 
duration  since  most  of  these  lands  are  quickly  accessible  to  the 
United  States,  especially  Mexico,  Cuba,  Porto  Pico  and  Central 
America. 

Factors  in  Planning  Trips. — A  manufacturer  should  seek  to 
learn  all  that  he  possibly  can,  regarding  business  conditions,  in  the 
shortest  possible  time.  The  means  of  doing  this  depend  upon  a 
variety  of  circumstances.  It  may  prove  most  advantageous  to 
make  short  visits  to  a  number  of  countries,  touching  only  at  the 
principal  places,  in  order  to  obtain  a  knowledge,  by  personal  associa- 
tion with  the  merchants,  of  their  requirements  and  of  different  trade 
fields.  Where  time  is  a  factor  and  only  a  short  trip  can  be  made, 
the  manufacturer,  if  he  has  learned  by  previous  study  that  the 
conditions  for  the  sale  of  his  products  are  practically  the  same 
in  all  of  the  twenty  republics,  may  obtain  much  valuable  knowl- 
edge by  visiting  only  one  or  two  countries.  At  any  rate,  he  should 
determine  in  advance  the  places  at  which  he  will  stop,  and  plan  his 
trip  with  the  utmost  care,  so  that  he  may  be  reached  quickly  and 
directly  whenever  it  is  found  expedient  to  do  so.  Necessity  for 
advance  study  cannot  be  too  strongly  emphasized,  as  needless  travel- 
ing may  thus  be  avoided  by  omitting  visits  to  countries  where  the 
prospects  for  business  are  unfavorable  because  of  difficulties  that 
cannot  be  overcome. 


116  EXPOETIXG  TO  LATIN  AMERICA 

In  the  Appendix  appears  a  brief  commercial  outline  of  Latin 
America  and  of  the  ways  in  which  the  different  countries  may 
best  be  visited.  The  American  manufacturer  who  seeks  to  do 
business  there  should  determine  by  study,  in  accordance  with  the 
suggestions  given  in  Chapter  II,  which  places  it  is  to  his  advan- 
tage to  visit. 

Information  Regarding  Routes,  Etc. — The  business  man  who 
intends  to  visit  the  Latin  American  republics  himself  or  to  send 
representatives  to  make  investigations  may  obtain  the  needed  in- 
formation relative  to  these  countries  from  a  number  of  sources. 
These  are: 

1.  Travel  bureaus. 

2.  Tourists'  agencies. 

3.  Eailroad  agencies. 

4.  Pan-American  Union,  "Washington,  D.  C. 

5.  Steamship  lines  plying  to  Latin  America. 

Important  advantages  may  be  obtained  by  the  purchase  of  round 
trip  tickets  of  recognized  tourist  agencies.  During  the  winter 
season,  many  excursions  are  made  from  New  York  City  or  Gulf 
ports  which  will  permit  the  manufacturer  to  visit  the  West  Indies, 
Central  America,  and  ports  on  the  north  coast  of  South  America. 
As  the  stops  usually  made  are  not  of  sufficient  length  to  permit 
investigation,  it  is  preferable  to  make  journeys  which  would  per- 
mit of  a  longer  stop-over  in  the  principal  cities.  A  list  of  tours 
and  their  cost  is  given  on  page  533. 

Suggestions  for  Various  Trips. — Following  are  suggestions  for 
specific  tours,  which  may  be  added  to  indefinitely : 

1.  To  the  Eepublic  of  Cuba,  from  New  York  or  Gulf  ports. 

2.  To  Cuba  and  Mexico  from  New  York  or  Gulf  ports.  Trips 
from  Havana  to  Mexico  by  way  of  Vera  Cruz  and  return  via 
Laredo,  Eagle  Pass,  or  El  Paso. 

3.  To  Central  America  via  Panama  or  Costa  Rica,  return  via 
Guatemala  and  New  Orleans. 

4.  West  Coast  South  America  via  Panama  and  return  via  Argen- 
tina and  Brazil. 

5.  East  Coast  South  America  and  return  via  West  Coast  South 
America  and  Panama. 

The  Best  Time  for  Visits. — Tlie  conditions  which  influence 
traveling  y^ry  H'j  greatly  in  the  Latin  American  countries  that 


PLANNING  A  SALES  TRIP  117 

no  definite  time  seems  best,  although  in  some  of  the  republics 
commercial  travelers  find  it  advantageous  to  reach  certain  coun- 
tries at  different  periods.  In  Argentina  this  is  January,  when  the 
bulk  of  the  crops  are  being  exported.  In  Brazil,  November,  in 
many  lines  of  manufacture,  is  found  to  be  advantageous  because 
of  the  fact  that  the  exporters  of  coffee  are  then  receiving  returns 
from  their  European  consignments  of  this  important  agricultural 
product.  In  Central  America,  manufacturers  are  accustomed  to 
place  their  orders  for  holiday  business  in  the  months  of  August, 
September,  and  October  in  order  that  shipments  may  be  received  in 
time  for  the  Christmas  business.  Many  lines  of  industry  are  af- 
fected by  the  rainy  season  and  in  such  instances  importations  are 
timed  so  that  they  may  arrive  just  previous  to  the  beginning  of  the 
rains.  In  Mexico  conditions  are  governed  largely  by  the  same 
factors  that  influence  the  purchase  of  products  in  the  United 
States. 

As  far  as  visits  are  concerned,  many  travelers  prefer  the  rainy 
season,  notwithstanding  the  daily  downpours,  in  preference  to 
traveling  during  the  period  of  extreme  dryness  when  the  journey 
is  frequently  made  very  unpleasant  by  the  constant  dust.  On  the 
whole,  it  will  be  found  advantageous  to  visit  the  capitals  during 
the  period  when  the  social  season  is  at  its  height,  as  a  better 
opportunity  is  afforded  to  study  conditions  and  to  obtain  an  in- 
sight into  the  life  of  the  Latin  American  people.  As  the  religion 
of  the  great  mass  of  Latin  Americans  is  Catholic,  the  period  preced- 
ing Easter  is  usually  the  dullest,  since  Lent  is  strictly  observed. 

The  Selection  of  Routes. — The  choice  of  a  route,  as  already 
stated,  is  optional.  If  a  trip  to  South  America  is  planned,  it  may 
be  more  desirable  to  visit  the  republics  of  Brazil,  Argentina,  Para- 
guay, and  Uruguay  first,  and  then  cross  the  Andes  to  Chile  and 
in  turn  visit  the  capitals  of  the  republics  on  the  west  coast,  re- 
turning via  Panama. 

Factors  Involved. — Trips  of  investigation,  particularly  when  the 
time  is  limited,  should  be  made  preferably  to  the  capitals.  A 
study  of  practically  all  of  the  Latin  x'Vmerican  countries  will  reveal 
that  the  great  bulk  of  the  population  is  located  in  the  principal 
cities.  The  population  of  South  America  is  found  largely  on  the 
border  or  around  the  rim  of  the  continent.  An  understanding 
of  the  conditions  that  exist  in  the  other  parts  of  the  countries  may 


118  EXPORTING  TO  LATIN  AMERICA 

easily  be  secured  by  a  series  of  short  trips  to  the  small  towns, 
to  large  ranches,  estancias  or  haciendas,  etc. 

Expense  of  Traveling. — Many  business  men  are  deterred  from 
making  trips  to  Latin  America  because  of  the  expenses  of  travel, 
but  'frequently  these  have  been  exaggerated.  In  most  instances 
trips  could  be  arranged,  the  cost  of  which  would  not  involve  greater 
expense  than  those  of  an  ordinary  vacation.  Generally  speaking, 
the  expenses,  including  the  railroad  and  steamship  fare,  with  the 
necessary  baggage,  will  average  from  $7.00  to  $10.00  per  day, 
depending  naturally  upon  the  cities  visited  and  the  hotels  selected 
for  stopping  places.  It  is  inadvisable  to  carry  trunks  which  weigh 
more  than  125  pounds  as  they  add  materially  to  the  expenses. 

The  Condition  of  Transportation. — The  passenger  who  travels 
between  the  United  States  and  Latin  America  finds  that  the  accom- 
modations are,  on  the  whole,  very  favorable.  A  number  of  lines 
plying  between  New  York  and  the  Argentine  operate  steamers 
that  may  be  compared  in  a  general  way  with  the  better  class  of 
ships  in  the  slower  routes  in  the  European  American  trade.  Be- 
tween the  southern  parts  of  the  United  States  and  Central  America 
steamer  accommodations  are  also  very  desirable.  In  the  larger 
ships  the  staterooms  are  modern  and  artificially  cooled,  while  the 
fare  is  of  a  high  degree  of  excellence.  Wlicre  it  is  necessary  to 
travel  by  rail  in  the  Latin  American  countries,  the  railroads, 
for  the  most  part,  offer  excellent  accommodations.  The  sleeping 
cars  are  sometimes  even  better  than  American  Pullmans  and  where 
long  trips  are  necessary  good  dining  car  service  is  provided. 

Traveling  Conditions  in  Latin  America. — The  conditions  which 
affect  traveling  vary  so  greatly  that  it  is  impossible  to  speak  of 
them  except  in  the  most  general  terms.  It  is  now,  however,  pos- 
sible to  reach  practically  every  important  place  in  Latin  America 
without  difficulty,  either  by  steanisliip  or  rail.  For  the  most  part, 
the  accommodations  are  good,  but  naturally  these  are  influenced  by 
the  amount  of  travel,  the  importance  of  the  route,  the  locality,  and 
similar  (lelorniiiiing  factors,  as  in  the  United  States. 

The  Character  of  the  Hotels. — Naturally  in  a  territory  as  large 
as  Latin  America  and  with  as  varying  conditions,  there  are  many 
classes  of  hotels;  hence  here  again  it  is  possible  only  to  generalize. 
In  the  larger  cities,  such  as  Buenos  Aires,  ]\Iexieo  City,  Havana,  etc., 
the  good  hotels  equal  in  accommodations  and  service  those  of  the 


PLANNING  A  SALES  TRIP  119 

larger  communities  of  the  United  States,  although  the  prices  are 
higher.  In  the  smaller  towns  the  hotels  are  often  of  a  very  low 
order  although  in  some  places  comfortable  accommodations  can 
be  had;  in  fact  the  modern  conveniences  are  becoming  more  and 
more  common.  The  traveler  can  usually  obtain  information  re- 
garding the  best  hotels  at  which  to  stop  by  discussing  the  subject 
with  fellow  travelers,  with  friends,  with  steamship  officials,  or 
with  merchants  in  the  port  previous  to  the  new  one  to  be  visited. 

How  to  Obtain  Specific  Information. — Literature  regarding  the 
individual  countries  is  rapidly  on  the  increase  and  a  numl)er  of 
excellent  books  have  recently  been  published.  These  will  be  found 
listed  on  page  47S. 

Suggestions  for  Clothing. — The  traveler  who  visits  Latin  Amer- 
ica must  provide  himself  with  clothing  appropriate  to  several  cli- 
mates. If  he  confines  his  movements  to  the  tropical  regions,  cloth- 
ing appropriate  to  the  summers  of  the  northerly  latitudes  will 
suffice.  If  it  is  necessary  to  visit  the  interior  or  plateau  regions, 
heavier  clothing  must  be  carried,  particularly  woolen  underwear 
and  overcoats.  If  visits  to  remote  sections  are  anticipated,  where 
conditions  are  more  primitive,  and  first-class  accommodations  are 
not  available,  it  is  advisable  to  make  provisions  for  personal  con- 
veniences.   The  following  brief  suggestions  will  prove  valuable : 

Outer  Garments.  Linen,  cotton,  or  duck  trousers  and  coat.  Some 
travelers  object  to  these  because  of  the  expense  of  laundering 
them  since  many  changes  are  required,  and  therefore  they  are  not 
practical.  Eoom  is  also  required  in  trunks;  however,  they  are 
natty  and  cool.  They  can  be  obtained  at  reasonable  prices  in  the 
port  cities.  The  fabric  known  as  "Palm  Beach"  is  also  worn  but 
many  experienced  travelers  prefer  simple  blue  serge  which  is  both 
cool  and  serviceable.  The  objection  to  the  wearing  of  khaki  is 
that  the  wearer  presents  the  appearance  of  an  official  or  military 
man,  which  is  frequently  disadvantageous  in  the  interior.  For  trips 
into  the  interior  (made  on  horseback),  stout  woolen  suits  should 
be  worn.  For  dress  purposes,  the  ordinary  black  dress  clothes  are 
indispensable.  In  those  cities  which  enjoy  a  temperate  climate,  the 
clothing  Avorn  under  similar  conditions  in  the  United  States  is 
appropriate.  Frock  suits  are  in  demand  and  the  silk  hat  is  more 
widely  used  in  Latin  America  than  in  the  United  States. 

Underwear.    Anything  that  is  comfortable  may  be  used,  and  only 


120  EXPOETING  TO  LATIN  AMERICA 

the  individual  needs  of  the  traveler  should  be  considered.  It  is  ad- 
visable, however,  to  carry  both  light  and  heavy  weight  because  of 
the  frequent  changes,  and  on  account  of  wind  in  traveling  from 
the  lower  to  the  higher  regions.  The  use  of  an  abdominal  band, 
which  is  easily  put  on  and  taken  off,  is  advisable  in  the  mountains. 

Necessities  for  Horseback  Trips. — Travelers  who  are  compelled 
to  make  overland  trips  on  mule  or  horseback  should  provide  them- 
selves with  a  complete  traveling  outfit.  This  naturally  consists  of 
a  traveling  suit  of  wool,  already  referred  to,  a  broad-brimmed  soft 
hat,  heavy  socks,  thick-soled  shoes,  leather  riding  boots,  and  close- 
fitting  puttees.  The  latter  should  be  high  laced,  as  they  tend  to 
keep  out  the  insects  known  as  garapatos,  jiggers,  etc.  A  flexible 
waterproof  bag,  which  is  easily  rolled  up  and  strapped  behind 
the  saddle,  must  also  be  used.  In  this  can  be  placed  necessary 
changes  of  clothing  and  simple  articles  of  food  which  must  be  kept 
therein.  A  rubber  coat  should  also  be  bought.  The  best  variety 
is  the  ordinary  black  rubber  coat  which  will  keep  off  the  heavy 
rain.  The  ordinary  raincoat  will  not  withstand  the  tropical  down- 
pours and  the  slickers  sometimes  used  are  often  too  heavy. 

Some  travelers  prefer  the  poncho,  which  is  a  heavy  rubber  blanket 
with  a  hole  in  the  middle  tlirough  which  the  head  is  placed.  It 
serves  to  cover  both  the  rider  and  the  horse,  permitting  the  heavy 
rain  to  run  off.  The  carrying  of  one's  own  sheets,  blankets,  and 
pillows  is  advisable,  and  if  a  long  trip  to  the  interior  is  to  be  made 
a  strong  hammock  should  invariably  be  carried. 

In  some  instances  a  strong  folding  cot  is  preferable  to  a  ham- 
mock, although  the  latter  has  advantages.  When  possible  an  air 
mattress  is  also  a  highly  appreciated  luxury,  as  is  a  strong  rug. 
This  is  because  of  the  fact  that  sleeping  accommodations  are  often 
far  from  inviting.  A  mosquito  bar  is  likewise  essential  arid  par- 
ticularly so  for  use  on  river  steamers.  The  best  sort  of  bar  is 
one  which  folds,  the  modern  canopy  effect  being  especially  desir- 
able. In  this  connection  mosquito  nettings  or  gauze  coverings  for 
the  head  should  also  be  purchased  before  departure,  and  gloves  with 
wliich  to  protect  the  hands  where  mosquitoes  are  very  abundant 
should  likewise  be  included. 

A  durable  electric  pocket  lamp  will  often  prove  highly  useful. 
A  liberal  quantity  of  a  preparation  with  which  to  anoint  the  body 
against  insects  should  also  be  included  in  the  kit.    One  of  the  best 


PLANNING  A  SALES  TEIP  121 

is  oil  of  citronella.  The  traveler  who  is  accustomed  to  frequent 
shaving  should  include  a  liberal  supply  of  shaving  soap,  ordinary 
toilet  soap,  and  other  necessities.  A  few  strong  towels  should  form 
a  part  of  the  baggage.  In  the  dry  regions  a  duster  should  be 
used,  while  a  thick  woolen  shawl  will  frequently  be  found  a  great 
comfort.  Under  such  conditions,  also,  shirts  with  soft  collars 
will  be  found  most  comfortable. 

All  these  articles  should  be  purchased  at  home  as  they  can  be 
bought  more  reasonal)ly  than  in  Latin  America. 

Proper  Saddles  Important. — In  order  to  obtain  the  maximum 
comfort  while  traveling  a  proper  saddle  is  indispensable.  It  will 
generally  be  found  that  the  native  saddle  is  the  best  for  the  pur- 
pose but  a  leather-covered  stirrup  should  be  insisted  upon.  The 
broad  leather  covering  will  protect  the  legs  against  the  trees  and 
rocks  with  which  they  come  in  contact.  In  most  countries  the  girth 
of  the  saddle  should  be  small  as  the  horses  are  generally  not 
large. 

The  traveler  should  guard  against  being  overheated  and  should 
always  walk  in  the  shade  in  preference  to  the  sun.  At  midday  he 
should  studiously  avoid  the  street. 

Water.  This  should  be  eschewed,  except  in  large  cities  where 
absolute  assurance  of  its  purity  can  be  obtained.  The  fact  that 
the  source  of  the  water  supply  is  the  mountains  is  no  guarantee  of 
its  purity,  because  of  the  danger  of  its  contamination  in  transit. 
In  the  uplands  of  Peru,  for  instance,  the  water  from  the  moim- 
tains  is  said  to  cause  a  sickness  knovm.  as  viruga,  or  Couzens 
disease. 

Mineral  Waters.  If  these  are  well-known  foreign  brands,  the 
traveler  is  perfectly  safe.  Local  brands  should  be  regarded  with 
the  utmost  suspicion  as  frequently  they  are  full  of  impurities  and 
bacilli. 

Vegetables.  Because  of  the  fact  that  they  are  washed  in  water, 
salads,  etc.,  should  be  avoided.  Generally  speaking,  vegetables 
are  only  perfectly  safe  if  cooked  or  boiled. 

Diseases  to  be  Feared. — On  the  whole,  health  conditions  in 
Latin  America  are  such  that  the  traveler  who  exercises  ordinary 
care  need  have  no  particular  fear.  By  guarding  against  unnecessary 
exposure  and  observing  caution  in  regard  to  personal  habits  in  ad- 
dition to  careful  personal  hygiene,  any  danger  is  minimized.   Small- 


122  EXPORTING  TO  LATIN  AMERICA 

pox  naturally  exists,  but  is  due  to  the  lack  of  cleanliness  and  can 
easily  be  guarded  against  by  vaccination.  No  traveler  should  visit 
Latin  America  without  this  precaution.  Yellow  fever  exists  in 
certain  swampy  localities  and  the  mosquito  net  is  the  best  protec- 
tion. The  bubonic  plague  is  known  in  certain  ports,  but  there  is 
practically  no  danger  therefrom.  Leprosy  exists,  but  presents  no 
danger.  Beri-beri,  when  found,  is  usually  the  result  of  lack  of 
nourishment.  Typhoid  fever  is  quite  prevalent  in  certain  places 
but  is  diminishing.  This  should  be  guarded  against  by  avoiding 
water,  uncooked  vegetables,  etc.,  and  by  the  use  of  an  anti-typhoid 
injection.  Malaria  exists  chiefly  in  the  countries  and  villages, 
and  is  caused  by  lack  of  proper  sanitary  conveniences.  It  is  car- 
ried chiefly  by  the  mosquito,  against  which  the  net  is  the  best  pro- 
tection. Tuberculosis  is  the  cause  of  a  very  high  death  rate  in 
many  of  the  upland  cities.  It  is  superinduced  by  the  bad  housing 
conditions  and  often  results  from  pneumonia  which  is  caused  by 
the  rapid  fluctuations  in  the  temperature.  In  some  places  there  is 
a  change  from  10-i  degrees  Fahrenheit  in  the  sun  to  37  degrees 
Fahrenheit  in  the  shade.  Soroche,  or  mountain  sickness,  is  caused 
by  the  high  elevations.  Its  symptoms  are  a  severe  headache,  vomit- 
ing, nausea,  etc.,  brought  on  by  the  diminished  atmospheric 
pressure. 

Conditions  Affecting  Health. — Because  of  the  wide  range  of 
climate  in  Latin  America  it  is  only  possible  to  speak  in  general 
terms  regarding  health  conditions.  In  the  larger  cities  sanitation 
is  usually  all  that  can  be  desired,  but  in  the  smaller  towns  condi- 
tions are  often  not  so  favorable,  although  in  many  places  where 
modern  sanitary  methods  have  not  been  adopted  efforts  are  being 
made  to  correct  the  defect.  It  is  extremely  important  that  the 
traveler,  especially  in  the  cities  near  the  equator,  shall  observe  more 
than  the  ordinary  rules  of  hygiene,  and  care  should  be  taken  not  to 
expose  oneself  more  than  necessary.  The  following  specific  sug- 
gestions will  be  found  useful : 

Insects.  The  mosquito  is  one  of  the  pests  which  the  traveler 
should  seek  to  avoid,  inasmuch  as  yellow  fever,  malaria,  and  other 
diseases  may  be  contracted  tlierefroin.  For  that  reason  a  mosquito 
bar  should  invariably  be  used. 

Alcoliol.  The  use  of  alcohol  should  be  foregone  in  all  its  forms 
as  it  is  far  more  dangerous  than  iu  the  United  States. 


PLANNING  A  SALES  TETP  123 

Sudden,  Chill.  One  of  the  peculiarities  of  the  tropical  highlands 
is  the  extreme  difference  between  the  temperature  in  the  sun  and 
in  the  shade.  This  is  even  more  marked  in  the  case  of  the  fall  in 
the  temperature  between  night  and  day.  It  can  be  most  easily 
avoided  by  a  gradual  ascent  from  the  lowlands  to  the  uplands,  with 
stops  at  various  altitudes  to  accommodate  the  organs  to  the  chang- 
ing conditions. 

Snow  Blindness.  This  frequently  causes  inconvenience  to  trav- 
elers who  cross  the  snow  fields  of  the  Andes".  Colored  glasses  should 
be  carried  as  a  protection. 

Anemia  is  suffered  principally  by  the  natives  and  is  due  to  the 
lack  of  hygienic  conditions. 

Medicine  Case  Needed. — Experienced  travelers  recommend  the 
carrying  of  a  medicine  case  containing  simple  remedies.  These 
include,  in  addition  to  the  oil  of  citronella,  quinine  pills  or  tablets, 
calomel  tablets,  vaseline,  alcohol,  and  other  ordinary  remedies. 
Some  gauze  bandages,  court  plaster,  and  similar  materials  will  be 
found  useful. 


CHAPTER  VIII 

THE  MERCHANTS  OF  LATIN  AMERICA,     THEIR  BUSINESS  CUS- 
TOMS AND   METHODS.     THE   STORES  AND   SHOPS 

Many  misconceptions  prevail  regarding  the  people  of  Latin 
America.  Among  business  men  in  particular  there  is  a  general  lack 
of  knowledge  of  the  merchants  of  the  southern  republics. 

It  is  highly  essential,  if  business  is  to  be  transacted  properly, 
that  the  manufacturer  should  have  a  thorough  knowledge  of  his 
correspondents  and  analyze  very  carefully  the  many  conflicting  ele- 
ments with  which  he  must  contend.  Such  analysis  serves  to 
emphasize  the  necessity  for  a  scientific  consideration  of  the  prin- 
ciples underlying  export  business.  The  American  business  man 
after  such  study  will  more  fully  realize  the  marked  difference  in 
conditions  between  a  domestic  and  a  foreign  market. 

The  Kinds  of  Merchants. — The  business  establishments  of  Latin 
America  in  general  are  of  two  classes:  (1)  those  owned  by  for- 
eigners (German,  English,  French,  Spanish,  Italian,  Portuguese, 
etc.)  ;  and  (2)  those  conducted  by  natives. 

The  necessity  for  differentiating  wall  be  more  readily  appre- 
ciated if  the  following  statistics  of  foreigners  in  business,  in  the 
city  of  Buenos  Aires  alone,  are  taken  into  consideration.  The 
number  of  business  houses  there  total  29,G90,  exclusive  of  indus- 
trial or  manufacturing  plants.  Of  these  12,383  are  Italian,  12,783 
Spanish,  4,358  Argentine.  The  number  of  German  houses  in 
Buenos  Aires  is  299  and  of  British  1G3,  while  of  Americans  there 
are  probably  between  70  and  80.  In  other  cities  the  number 
of  foreigners  will  vary  materially  from  the  foregoing  but  the  Span- 
ish generally  outnumber  the  Italians;  in  other  communities,  as  in 
the  city  of  Guatemala,  for  instance,  the  German  is  the  predominat- 
ing element. 

Development  of  the  Latin  American. — As  the  natives  of  the 
different  countries  are  an  important  factor  in  Latin  American  com- 
merce, a  consideration  of  their  character  is  essential.     The  view- 

124 


THE  MERCHANTS  OF  LATIN"  AMERICA  125 

point  of  Latin  Americans  cannot  be  understood  without  an  analysis 
of  their  development. 

The  inhabitants  of  Latin  America  are  regarded  by  most  people 
either  as  Spaniards  or  Portuguese,  and  in  some  instances  as 
mongrels  or  half-breeds.  However,  the  Latin  American  is  a  special 
type  and  the  greater  bulk  of  the  population  is  of  the  mixed  or 
Mestizo  class,  mixed  Spanish  and  Indian  blood.  Many  of  the 
native  merchants  are  of  this  extraction.  In  some  of  the  republics 
the  Mestizo  class  is  very  small.  This  is  particularly  true  of  Costa 
Rica,  while  in  Guatemala  the  extreme  opposite  is  the  case,  the 
native  Indian  population  being  far  in  excess  of  the  Mestizo. 

Mingling^  of  the  Races. — In  Latin  American  countries  the 
mingling  of  the  races  has  been  of  questionable  influence.  In  the 
days  of  the  conquest  the  immigrants  from  Europe  were  the  lowest 
type  of  adventurers  who  intermarried  with  the  native  Indian 
women.  In  the  course  of  years  since  the  founding  of  these  coun- 
tries there  has  been  considerable  intermarriage  and  numerous 
types  have  arisen.  As  a  result,  the  white  population  is,  to  a  very 
large  extent,  mixed,  and  has  at  least  a  certain  proportion  of 
aboriginal  blood.  Generally  speaking,  the  inhabitants  of  Latin 
America  may  be  classified  as  follows: 

1.  Whites,  with  a  greater  or  lesser  percentage  of  other  blood. 

2.  The  Mestizos,  or  white  and  aboriginal. 

3.  Pure  Indian. 

4.  The  Mulatto. 

5.  The  Sambo,  the  result  of  intermarriage  of  Indian  and  black. 

6.  Miscellaneous  groups  too  widely  differentiated  to  describe 
in  detail. 

The  Distribution  of  the  Races. — To  the  Mestizo  class  belong  the 
bulk  of  the  population  of  Chile,  Peru,  Brazil,  Mexico  and  other 
South  and  Central  American  republics.  The  pure  Indian  is  found 
in  many  of  the  countries  of  Central  America  and  likewise  in  ]\Iex- 
ico.  The  Mulatto  is  most  common  in  certain  parts  of  Brazil, 
in  the  Atlantic  Coast  regions  of  the  Central  American  republics, 
in  Cuba  and  Porto  Rico.  The  Sambo  is  most  often  found  in  cer- 
tain districts  of  Brazil. 

The  Difference  Among  the  Lower  Classes. — It  is  interesting  to 
contrast  the  classes  of  tlie  population  of  -the  various  republics.  In 
Mexico  the  laborer  is  known  as  the  peon,  while  in  Chile  those 


126  EXPORTING  TO  LATIN  AMERICA 

who  make  up  this  strata  of  society  are  called  rotos.  The  agricul- 
tural laborer  of  Chile  is  of  a  higher  class  than  the  peon  of  Mexico 
and  bears  the  name  of  inquilino  and  is  on  the  whole  a  very  in- 
dustrious law-abiding  citizen.  The  cholo  of  Ecuador,  Bolivia,  and 
Peru,  corresponds  to  the  Mexican  peon,  while  the  pongo  of  Bolivia 
is  of  a  somewhat  hi,2:her  type. 

The  Buyers  of  American  Products. — The  American  manufac- 
turer must  consider  all  specific  problems  in  connection  with  export 
trade.  One  of  these  is  the  subject  of  the  actual  importers  of 
American  products.  Sales  of  American  wares  can  be  made  to  the 
following : 

1.  General  Importers.  These  will  act  as  distributors  for  a  coun- 
try or  district  or  buy  for  their  own  account;  their  sales  are  made 
at  retail  or  wholesale  without  restriction  regarding  territory. 

2.  The  Wholesale  Merchant  Jobbers.  This  class  of  dealers  re- 
quires little  explanation.  Importations  are  made  in  quantities  for 
sales  to  dealers. 

3.  The  Betailers  in  Position  to  Import  for  Their  Own  Account. 
The  latter  class  is  not  clearly  defined  and  only  by  personal  visits 
or  sales  by  local  agents  able  to  judge  of  conditions  can  their  quali- 
fications be  determined.  ^lany  losses  have  been  sustained  by  manu- 
facturers who  have  failed  to  discriminate  and  have  sold  to  retailers 
whose  purchases  did  not  warrant  direct  importations  and  who 
sliould  have  supplied  their  requirements  in  the  nearest  wholesale 
houses. 

4.  Large  Individual  Imporicrs  or  Companies.  These  include 
railroad  and  industrial  companies  or  important  farm  owners, 
etc. 

The  Attitude  of  Dealers. — In  discussing  tlie  subject  of  sales  to 
Latin  Americans,  the  attitude  of  dealers  toward  the  general  prob- 
lem of  merchandising  must  be  considered.  This  is  an  interesting 
topic  and  essential  in  studying  the  possibilities  of  the  markets.  In 
the  first  place,  with  but  rare  exceptions,  retail  prices  are  higher 
in  Latin  America  than  in  the  United  States.  This  is  due  to  the  fact 
tliat  dealers,  because  of  financial  and  credit  conditions,  are  com- 
pelled to  have  a  larger  margin  of  profit  in  order  to  cover  the  high 
cost  of  doing  business.  With  few  exceptions  duties  must  be  paid 
on  everything  imported.  The  freight  must  be  paid  for  a  long  ocean 
haul;  and  the  charges  of  the  customs  brokers  for  clearance,  and 


THE  MERCHANTS  OF  LATIN  AMERICA  127 

the  co8t  of  inland  trans])ortation  (in  the  United  States  as  well  as 
in  the  Latin  American  countries). 

As  the  possibilities  of  frequent  "turn-over"  are  not  so  easy  as  in 
the  L^nited  States,  because  of  local  conditions,  dealers  must  neces- 
sarily obtain  high  prices.  Advantage  is  also  taken  of  the  demand 
for  novelties  to  calculate  liberal  profits. 

The  Stores  and  Buildings.— The  visitor  to  the  principal  capitals 
of  the  Latin  American  countries  will  be  struck  by  the  fact  that 
many  of  the  business  buildings  are  as  modern  in  every  respect  as 
those  of  the  great  cities  of  the  United  States.  The  show  windows, 
display  fixtures,  appliances,  etc.,  are  those  that  will  be  found  in 
commercial  establishments  of  a  similar  class  at  home.  In  the 
smaller  communities,  however,  a  marked  difference  is  noticeable. 
The  business  houses  there  are  frequently  of  only  one  story,  and 
in  the  more  remote  places  they  are  of  the  old  Spanish  style,  with 
thick  walls  and  small  windows.  It  is  in  the  modernizing  of  this 
commercial  feature  that  many  opportunities  exist.  Americans  who 
avail  themselves  of  the  possibilities  in  the  readjustment  to  the  new 
conditions  will  undoubtedly  profit. 

Various  Methods  of  Merchandising. — In  consequence  of  increas- 
ing competition,  the  commercial  situation  in  Latin  America  is 
fast  becoming  as  complex  as  in  the  United  States.  In  order  to 
make  an  intelligent  effort  for  its  trade  a  study  of  modern  mer- 
chandising methods  is  helpful.  This  can  best  be  done  by  con- 
sidering in  sequence  the  various  kinds  of  buyers.  In  the  larger 
cities  merchandising  and  importing  generally  are  carried  on  in  a 
manner  very  similar  to  that  customary  in  the  United  States.  The 
complexity  of  trade  and  the  high  plane  which  commerce  has 
reached  makes  specializing  more  necessary  than  in  the  smaller 
communities.  A  study  of  the  importers  will  help  to  make  this 
problem  more  intelligible. 

General  Importers. — One  of  the  chief  reasons  why  mailing  lists 
of  Latin  America  are  so  unsatisfactory  is  that  merchants  are  fre- 
quently classified  only  under  one  heading,  notwithstanding  the 
fact  that  they  may  deal  in  a  wide  variety  of  products.  The  pur- 
chases of  general  importers  frequently  embrace  almost  every  con- 
ceivable kind  of  merchandise.  In  addition  to  making  such  im- 
portations, this  class  of  dealer  will  often  be  engaged  in  the  repre- 
sentation of  manufacturers  on  a  commission  basis,  in  banking  or 


128  EXPORTING  TO  LATIN  AMERICA 

foreign  exchange  business,  in  placing  insurance,  and  not  infre- 
quently he  will  be  actively  engaged  in  industrial  enterprises.  A-^ery 
often  a  retail  as  well  as  a  wholesale  business  is  conducted.  This 
character  of  trading  is  common  in  the  ports  of  lesser  importance 
where  only  in  rare  instances  dealers  confine  themselves  to  one 
branch  of  commerce. 

Wholesale  Establishments. — Until  a  comparatively  recent  date 
it  was  unusual  for  a  merchant,  when  engaged  in  wholesale  trade, 
to  confine  his  efforts  to  one  class  of  merchandise  exclusively,  such  as 
dry  goods,  notions,  etc.  However,  trade  development  has  wrought 
a  marked  change  and  in  the  capitals,  such  as  Mexico  City,  Havana, 
Rio  de  Janeiro,  and  Buenos  Aires,  the  number  of  houses  devoted 
exclusively  to  one  kind  of  merchandise  is  rapidly  increasing. 

Industrial  Establishments. — In  many  places  in  Latin  America 
the  proprietors  of  manufacturing  plants  are  in  position  to  make 
direct  importation.  They  are  accustomed  to  look  to  tlie  producers 
of  machinery,  tools,  appliances,  etc.,  and  are  unwilling  to  depend 
upon  local  importers.  Such  establishments  offer  an  excellent  field 
for  importers  in  certain  lines. 

Railroad  and  Transportation  Companies. — The  railroad  and 
transportation  companies  of  Latin  America  are  frequently  eon- 
ducted  identically  as  are  similar  corporations  in  the  United  States. 
These  institutions  likewise  make  direct  importations,  and  main- 
tain highly  efficient  purchasing  departments  through  which  their 
needs  are  supplied.     These  must  receive  special  attention. 

Importers  of  Special  Commodities. — Another  group  of  buyers  in 
Latin  America  are  accustomed  to  make  direct  importations  of  their 
necessities.  These  include  the  handlers  of  coal,  coke,  fuel,  supplies 
for  ship-chandlers,  etc.  In  this  same  category  may  be  placed  the 
contractors  and  builders  who  make  special  contracts  for  large 
lots. 

Individuals  Who  Buy  on  a  Large  Scale. — In  practically  every 
country  in  Latin  America  there  will  be  found  certain  individuals 
whose  operations  are  so  large  that  their  needs  and  important  prod- 
ucts and  manufactures  frequently  exceed  those  of  merchants.  Such 
individuals  make  their  purchases  direct,  and  must  be  taken  into 
account  by  American  manufacturers  and  importers. 

Department  Stores. — The  department  store  of  the  American 
type,  engaged  in  the  sale  of  every  possible  article,  does  not  exist 


THE  MERCHANTS  OF  LATIN  AMERICA  129 

in  Latin  America.  The  nearest  approach  to  such  stores  has  been 
the  large  retail  dry  goods  establishments  found  in  practically  all 
the  capitals.  In  late  years  additions  have  been  made  to  the  num- 
ber of  the  lines  carried,  but  the  variety  is  not  yet  so  large  as  that 
of  the  department  stores  of  the  United  States.  These  stores,  natu- 
rally, are  importers. 

Retail  Stores  and  Shops. — It  is  in  this  branch  of  merchandising 
that  the  conditions  in  Latin  America  most  nearly  resemble  those 
in  this  country.  There  are  in  the  larger  cities  of  Latin  America 
a  much  larger  number  of  individuals  who  conduct  retail  stores 
devoted  to  only  one  kind  of  merchandise  such  as  dry  goods,  hats, 
groceries,  liquors,  etc.  These  firms  make  up  the  bulk  of  the  aver- 
age mailing  list  and  it  is  because  of  such  names  that  much  postage 
is  wasted,  as  only  a  small  percentage  of  these  dealers  are  in  a  posi- 
tion to  import,  and  therefore  supply  their  requirements  in  the 
wholesale  houses  of  the  larger  centers. 

General  Stores. — In  the  rural  communities,  mining  camps,  and 
in  the  smaller  port  towns,  the  general  store  is  found  to  the  same 
extent  as  in  the  United  States.  Here  are  sold  all  varieties  of  mer- 
chandise and  the  extent  of  stock  varies  in  direct  proportion  to 
the  population  of  the  district  served,  the  wealth  of  the  possible 
buyers,  and  other  conditions  which  determine  the  carrying  of  stocks 
in  the  United  States.  The  more  progressive  dealers  often  act  as 
supply  depots  for  the  smaller  stores,  tiendacitas,  to  which  they  sell 
at  wholesale,  as  also  to  the  itinerant  merchants  who  are  quite 
important  factors  in  certain  countries.  It  is  to  these  sources  of 
supply  that  the  small  retailers  or  storekeepers  make  periodical  visits 
(once  or  twice  a  year)  to  purchase  supplies.  Whether  the  general 
store  can  afford  to  import  direct  is  dependent  upon  many  circum- 
stances. The  volume  of  direct  purchases  made  by  such  stores  is 
increasing,  but  as  a  general  rule,  especially  in  the  interior,  unless 
a  very  large  volume  of  business  is  transacted  the  general  dealer 
depends  upon  the  large  importer  in  one  of  the  principal  cities. 

Markets  and  Fairs. — Noteworthy  features  of  Latin  American 
business,  particularly  in  those  countries  having  a  large  native 
population,  are  the  markets  and  fairs.  It  is  to  these  markets, 
usually  held  on  Sundays  although  occasionally  twice  a  week,  that 
the  natives  flock,  carrying  with  them  their  handiwork  or  products. 
The  markets  are  generally  large  open  spaces  surrounded  by  struc- 


130  EXPOETIXG  TO  LATIN"  AMERICA 

tures  which  contain  booths  and  sho])s,  and  here  trading  is  carried 
on  vigorousl}^  The  markets  are  the  chief  source  of  the  vegetable 
supply  for  the  community;  here  will  also  be  found  the  thousand 
and  one  knickknacks  which  appeal  to  the  fancy  of  the  native; 
including  his  simple  necessities,  which  in  most  of  the  republics 
form  the  chief  staples  of  commerce.  Fairs  are  held  at  intervals, 
and  to  these  come  natives  and  traders  by  thousands. 

The  amount  of  business  done  at  these  annual  or  semiannual 
gatherings  is  often  of  a  large  volume,  and  the  importance  of  the 
community  is  judged  by  the  number  of  natives  who  come  on 
market  day. 

Consideration  for  Customs. — In  order  to  enter  fully  into  the 
commercial  life  of  the  people,  a  knowledge  of  their  language  is 
indispensable.  An  attempt  to  do  business  through  an  interpreter 
is  usually  a  failure.  Under  any  circumstances,  even  though  the 
visitor  does  not  speak  Spanish,  consideration  should  be  shown 
for  the  methods  and  ideals  of  the  people,  to  the  extent  of  not  arous- 
ing their  prejudice.  Those  concerns  which  have  been  most  success- 
ful in  establishing  business  in  Latin  America  have  been  quick  to 
take  into  consideration  the  traditions  of  the  men  with  whom  they 
dealt  and  have  treated  them  as  intelligent,  self-respecting,  capable 
merchants.  They  have  recognized  that  the  likes  and  the  dislikes  of 
the  Latin  Americans  are  not  those  of  the  North  Americans,  and 
that  the  people  had  therefore  to  be  measured  by  a  different  standard 
from  that  which  was  applied  to  their  own  countrymen. 

In  dealing  with  Latin  American  merchants,  it  is  essential  to 
avoid  certain  delicate  questions.  These  are :  local  or  national 
politics ;  the  religion  of  the  people ;  reference  to  customs  which  may 
seem  strange  or  unusual ;  connection  with  questionable  claims  or 
concessions. 

Some  Important  Business  Customs. — In  seeking  to  do  business 
with  Latin  American  merchants  it  is  also  important  to  observe  the 
customs  which  characterize  business  transactions  of  that  people. 
The  failure  of  Americans  to  win  a  foothold  may  frequently  be 
attributed  to  a  neglect  of  this  vital  factor.  An  analysis  of  the 
character  of  the  Latin  Americans  is  therefore  desirable  and  can 
best  be  accomplished  by  a  consideration  of  their  qualities. 

Conservatism.  As  a  class  their  business  men  are  extremely 
conservative.     They  resent  being  persuaded  against  their  will  to 


THE  MEECHANTS  OF  LATm  AMERICA  131 

make  purchases  and  the  traveler  who  pursues  a  contrary  policy 
will  find  it  disastrous.  This  is  particularly  true  on  church  or 
national  holidays  or  at  the  periods  when  dealers  are  unusually 
busy. 

Progressiveness.  Despite  their  conservatism  the  Latin  Americans 
appreciate  progress  and  are  willing  to  take  advantage  of  the 
development  of  science  in  every  phase  of  advancement.  They  offer 
a  fine  field  for  American  enterprise  but  must  be  convinced  that 
it  is  to  their  advantage  to  buy  the  article  offered. 

Loyalty/.  One  of  the  characteristics  for  which  the  people  of 
the  southern  republics  are  noted  is  their  trade  loyalty.  When 
pleased  with  the  treatment  they  receive  or  with  the  merchandise 
they  buy,  it  is  very  difficult  for  one  competitor  to  dislodge  an- 
other. For  this  reason  careful  attention  to  first  orders  is  es- 
sential. 

Reliability.  As  a  class  the  Latin  American  merchant  is  reli- 
able and  may  be  trusted  to  fulfill  his  obligations.  In  many  in- 
stances a  verbal  promise  to  an  agreement  is  sufficient  without 
further  documents.  Naturally  there  are  exceptions  to  this  rule 
but  commercial  honor  is,  on  the  whole,  very  high. 

Efficiency.  Because  of  the  complex  tariffs,  freight  rates,  etc., 
Latin  American  merchants  are  accustomed  to  calculate  very  closely, 
and  as  a  result  are  among  the  best  traders  in  the  world.  From 
boyhood  they  are  trained  in  thoroughness.  It  is  conceded  by 
manufacturers  who  are  accustomed  to  do  business  both  in  the 
United  States  and  Latin  America,  that  the  merchants  of  the  latter 
field  are  far  more  efficient  than  similar  dealers  in  the  domestic 
market. 

Regard  for  Culture.  As  a  class  the  Latin  Americans  have  a 
fine  artistic  sense  and  a  higher  regard  for  culture,  literature,  music, 
and  the  fine  arts  than  most  Americans.  As  they  are  swayed  by 
sentiment,  their  love  or  hate  may  be  easily  aroused. 

Politeness  and  Hospitality.  The  Latin  American,  even  when  re- 
luctant to  buy,  is  extremely  polite,  and  much  may  be  accom- 
plished by  the  alert  representative  who  recognizes  this  fact  and 
takes  advantage  of  it  by  being  equally  polite.  The  Latin  American's 
reputation  for  hospitality  is  well  deserved  and  he  will  go  to  great 
lengths  for  those  who  come  well  recommended. 

Politeness  in  Business  Relations.    It  is  far  easier  to  reason  with 


132  EXPOETING  TO  LATIN  AMEEICA 

and  persuade  a  Latin  American  merchant  by  courteous  argument, 
than  it  is  to  cajole  or  drive  him.  He  is  as  polite  in  his  business 
relations  as  in  his  social  intercourse  and  he  naturally  expects  the 
same  courtesies  under  both  conditions.  He  is  very  appreciative  of 
those  who  recognize  his  peculiarities  and  who  try  to  meet  his  views, 
and  he  remembers  any  attempts  to  deceive  or  mislead  him.  On  the 
other  hand,  once  his  confidence  has  been  won  it  is  difficult  to 
undermine  it. 

Observance  of  Customs.. — As  a  concrete  example  of  Latin  Amer- 
ican politeness  may  be  cited  the  custom  of  removing  the  hat  when 
approaching  a  merchant,  even  when  one  recognizes  a  passing  ac- 
quaintance on  the  street.  A  failure  to  observe  this  simple  rule  often 
brands  a  traveler  as  lacking  in  good  manners  and  makes  it  far  more 
difficult  for  him  to  get  a  hearing. 

The  Resident  Foreign  Merchants. — Eeference  has  already  been 
made  to  the  large  number  of  foreign  merchants  found  in  prac- 
tically all  Latin  American  cities.  Naturally  they  too  are  influenced 
by  the  customs  of  the  countries,  and  their  business  methods  and 
ideas  are  in  general  those  described.  This  is  easily  accounted  for 
inasmuch  as  clerks  in  the  establishments  are  natives  and  frequently 
obtained  their  training  in  local  business  houses.  When  allowance 
is  made  for  personality,  and  the  characteristics  of  each  race,  a  for- 
eigner in  Latin  America  may  best  be  approached  in  the  general 
manner  that  is  used  in  soliciting  business  from  the  native  dealer. 

Business  Hours  in  General. — The  North  American  who  visits 
Latin  American  countries  for  the  first  time  will  be  impressed  by  the 
apparently  leisurely  manner  of  conducting  business.  The  lack  of 
the  intensity  so  characteristic  of  the  United  States  is  evident  even 
in  the  large  cities.  This  is  especially  surprising  to  those  who  con- 
sider the  hours  devoted  to  business  rather  short.  In  the  cities, 
business  generally  begins  at  8  :00  o'clock.  The  stores  are  closed  at 
noon  for  several  hours,  remaining  shut  until  2  :30  or  3  :00.  The 
custom  may  seem  strange  but  is  due  to  the  stringency  of  life  in 
the  tropics.  The  streets  are  generally  deserted,  consequently  no 
sales  are  lost,  and  most  Latin  American  ])usiness  men  take  lunch 
at  home.  Very  often  the  living  apartment,  e\eii  in  tlie  case  of  well- 
to-do  merchants,  is  above  the  store.  The  favorite  shopping  hours 
are  from  three  to  six,  and  the  offices  of  many  business  establishments 
are  open  until  7  or  8.    In  the  smaller  stores,  as  is  the  case  in 


THE  MERCHANTS  OF  LATIN"  AMERICA  133 

the  United  States,  the  closing  hour  is  sometime  later.  In  temper- 
ate latitudes,  the  custom  of  closing  does  not  prevail  to  the  same 
extent,  although  there  is  a  far  greater  conservation  of  energy 
throughout  Latin  America  than  is  the  case  in  the  United  States, 
and  this  has  been  found  decidedly  advantageous. 

Value  of  Personal  Relations. — Among  the  most  successful  repre- 
sentatives in  Latin  x\merica  are  those  who  have  shown  an  unusual 
interest  in  the  personal  relations  of  their  customers.  It  is  time 
well  spent  to  take  note  of  the  birthdays  of  the  customer  and  his 
family,  to  be  remembered  later  with  letters,  postal  cards  or  small 
gifts.  Furthermore,  the  dealer  who  is  so  remembered  by  a  repre- 
sentative who  later  assumes  charge  of  a  foreign  department  and 
who  continues  the  custom  of  writing,  will  feel  himself  under  strong 
obligations  and  can  be  held  against  even  the  most  vigorous  com- 
petition. Innumerable  instances  are  on  record  where  this  personal 
touch  has  maintained  the  loyalty  of  the  importer  against  lower 
prices.  Such  remembrances  may  also  be  suggested  for  use  upon 
fete  days  or  other  anniversaries  which  fill  a  very  important  part 
in  the  life  of  the  Latin  American  people. 

How  Business  is  Done. — Much  has  been  written  regarding  the 
business  customs  of  Latin  America  and  perhaps  no  phase  of  the 
relations  with  these  merchants  has  been  subject  to  more  erroneous 
treatment.  The  principles  of  doing  business  are  the  same  as  those 
which  underlie  commercial  transactions  in  the  United  States,  but 
naturally  there  is  a  difference  in  application,  based  upon  the  funda- 
mental difference  in  character  between  the  merchants  of  Latin 
America  and  those  of  this  country.  There  is  also  a  marked  differ- 
ence between  the  business  methods  which  prevail  in  the  larger  cities, 
where  commercial  affairs  receive  more  attention,  and  transactions 
in  the  less  important  communities  where  business  is  carried  on 
more  leisurely.  The  exact  method  of  approach  varies  with  the 
character  of  the  merchant  but  the  experienced  commercial  traveler 
has  found  that  in  the  larger  cities  the  alert,  progressive  dealer 
would  resent  the  methods  employed  to  win  the  confidence  and 
respect  of  the  merchant  in  the  smaller  town. 

This  applies  with  particular  force  to  the  custom,  widely  recom- 
mended by  some  travelers,  of  making  preliminary  visits  to  present 
letters  of  introduction  and  gradually  leading  up  to  a  discussion  of 
business.    This  method  is  found  highly  successful  in  smaller  towns 


134  EXPORTING  TO  LATIN  AMEEICA 

but  in  the  larger  places  (such  as  the  capitals),  the  representative 
would  find  this  means  highly  ineffective. 

Although  conditions  have  undergone  a  marked  change,  especially 
in  the  larger  cities  where  commercial  affairs  are  at  a  higher  tension, 
the  principles  applicable  to  domestic  sales  promotion  apply  with 
equal  force  to  Latin  America.  The  successful  traveler  will  adapt 
himself  to  the  circumstances  that  he  finds,  which  are  as  dis- 
similar in  the  southern  republics  as  in  the  United  States.  Adapt- 
ability is  the  prime  essential  of  a  traveler. 

Business  Details. — For  the  purpose  of  avoiding  misunderstand- 
ing, it  is  desirable  that  all  orders  placed  by  Latin  American  mer- 
chants be  signed.  The  American  firm  will  find  it  advantageous  to 
instruct  its  representative,  either  local  or  traveling,  to  leave  a 
carbon  copy  of  the  order  placed,  on  which  the  signature  of  the 
buyer  is  also  shown.  No  changes  should  be  made  on  the  original 
order  unless  such  are  also  made  on  the  duplicate.  In  this  way  all 
danger  of  misunderstandings  may  be  avoided. 

Opportunities  for  Public  Contracts. — With  the  extension  of  North 
American  financial  assistance  to  Latin  America,  the  opportuni- 
ties for  citizens  of  the  United  States  to  obtain  national,  state  and 
municipal  contracts  become  more  numerous.  Naturally,  these  can 
only  be  obtained  by  a  representative  on  the  ground  who  is  familiar 
with  all  the  details  and  procedure  necessary.  In  general,  such  un- 
derfekings  are  profitable,  but  the  interests  of  the  contractor  should 
be  safeguarded. 

Factors  to  Consider  in  Public  Work. — Because  of  local  condi- 
tions it  is  essential  in  submitting  bids,  or  in  making  estimates  for 
public  work,  to  take  into  consideration  not  alone  the  financial  con- 
dition of  the  municipal,  state  or  national  government,  but  other 
important  factors  which  may  result  in  loss  of  profits.  One  of 
these  is  the  fluctuations  in  exchange,  for  it  is  evident  that  if  settle- 
ment had  been  fixed  upon  a  day  when  the  quotations  were  unfa- 
vorable to  the  contractor,  serious  losses  might  follow  his  nonpay- 
ment. For  such  eventualities  a  margin  should  be  allowed  and  every 
item  in  a  bid  should  be  subjected  to  scrutiny  as  well  as  to  severe 
check. 

Safeguarding  Customs  Duties. — The  contracts  made  with  Latin 
American  countries,  whether  of  a  national,  state  or  municipal 
nature,   often  require  that  duties  be  paid  on  the  materials  im- 


THE  MERCHANTS  OF  LATIN  AMEEICA  135 

ported.  Such  duties  are  later  refunded,  but  unless  extreme  caution 
is  observed  and  the  contracts  are  carefully  drawn  by  lawyers  with 
a  knowledge  of  local  procedure,  obstacles  may  be  placed  in  the  way 
of  their  return.  The  letting  of  subcontracts  must  be  carefully 
watched  as  it  frequently  happens  that  subcontractors  are  not  suffi- 
ciently provided  with  capital  and  may  become  involved  to  such  an 
extent  that  concessions  or  contracts  are  endangered. 

Payments  for  public  work  are  often  made  out  of  a  budget  allow- 
ance and  the  contractor  must  make  certain  that  his  contracts  are 
provided  for  in  the  budget  approved  by  the  national  legislature 
or  state  assembly.  A  very  definite  understanding  regarding  pay- 
ments, and  particularly  as  to  the  money  in  which  settlement  is 
to  be  made,  should  be  insisted  upon  before  contracts  are  signed. 
Because  of  the  depreciated  currency  in  some  of  the  republics  there 
should  be  no  question  as  to  what  money  will  be  used  for  payment. 

legal  Conditions  in  Latin  America. — Legal  systems  of  the 
Latin  American  republics  are,  in  general,  based  on  the  old  Eoman 
laws  and  the  Code  Napoleon  has  also  influenced  the  passage  of 
many  laws.  While  there  is  a  great  similarity  in  the  laws  of  the 
twenty  republics,  nevertheless  they  vary  materially  and  the  pro- 
cedure in  general  is  complicated.  The  theory  that  all  legal  pro- 
ceedings must  be  written  holds  good  to  a  very  large  extent.  It  is 
customary  to  use  the  official  stamped  paper  in  the  preparation  of 
documents  and  the  notary  public  who  must  attest  to  the  genuine- 
ness of  the  document  is  an  important  figure  in  Latin  American 
legal  proceedings.  Because  of  the  complicated  system  lawyers 
should  always  be  selected  with  great  care,  and  the  recommendation 
of  banks  or  other  trustworthy  authorities  should  be  required.  The 
services  of  lawyers  in  the  preparation  of  contracts  for  public  work 
is  especially  urgent  because  of  the  possibility  of  embargoes  being 
placed  on  work  in  process  in  consequence  of  the  failure  of  a  local 
contractor  to  comply  with  necessary  stipulations  or  because  of  his 
lack  of  funds. 

Commercial  Registration. — In  the  appointment  of  local  agents 
or  the  opening  of  branch  offices  it  is  essential  to  take  into  consid- 
eration local,  state  and  national  laws.  In  practically  all  the  repub- 
lics a  registration  of  some  sort  must  be  filed  by  anyone  engaging  in 
business,  certain  books  must  be  kept  according  to  law  and  stamped 
at  intervals  by  specified  authorities.     Inasmuch  as  the  account 


136  EXPORTING  TO  LATIN  AMEEICA 

books  are  not  legally  recognized  unless  properly  stamped,  it  is  essen- 
tial that  all  legal  regulations  be  carefully  followed  to  insure  collec- 
tion of  possible  claims  that  it  may  be  necessary  to  file.  The  regu- 
lations regarding  licenses,  the  payment  of  taxes,  etc.,  should  all  be 
looked  into  at  the  outset  to  avoid  embarrassing  complications. 

Power  of  Attorney  Important. — The  importance  of  documentary 
evidence  of  authority  cannot  be  overemphasized.  •Throughout 
Latin  America  a  power  of  attorney,  properly  executed,  should  be 
furnished  to  anyone  who  may  be  called  upon  to  act  quickly  in  the 
interests  of  another.  The  showing  of  a  power  of  attorney  may 
frequently  result  in  important  saving,  both  of  money  and  time. 
When  any  matter  requiring  the  attention  of  a  lawyer  is  forwarded 
to  Latin  America  for  attention,  and  especially  when  legal  action 
is  necessary,  a  power  of  attorney  should  invariably  accompany  it. 
This  document  should  be  very  specific  and  should  state  fully  the 
extent  of  the  authority  which  it  is  desired  to  grant.  It  is  custom- 
ary in  the  preparation  of  a  power  of  attorney  to  have  it  bear  the 
signature  of  the  grantor,  to  which  is  affixed  an  acknowledgment  of 
a  notary  public,  the  latter's  signature  then  being  attested  by  the 
clerk  of  a  local  court,  whose  signature  in  turn  is  witnessed  by  a 
consul  of  the  country  to  which  the  power  of  attorney  is  to  be  sent. 
In  some  cases  it  may  prove  advisable  to  have  it  viseed  by  the  Sec- 
retary of  State  at  Washington  and  in  turn  by  the  Minister  or  Am- 
bassador of  the  Latin  American  republic  in  Washington. 

The  Mining  Laws  of  Latin  America. — The  laws  relating  to  min- 
ing operations  differ  greatly  in  the  various  republics.  In  some  in- 
stances they  are  extremely  favorable,  but  in  others  there  is  a  consid- 
erable element  of  risk.  In  general  they  are  based  on  a  system  of 
registration,  a  claim  being  denounced  and  then  worked  subject  to 
the  payment  of  certain  taxes.  A  danger  that  must  be  guarded 
against  is  that  of  possible  legal  proceedings  after  the  mine  has  been 
developed  and  is  approaching  a  profitable  stage,  this  being  accom- 
plished by  the  filing  of  claims  and  the  beginning  of  legal  proceed- 
ings which  often  become  very  complicated.  For  this  reason,  as  in 
the  case  of  all  matters  likely  to  become  subjects  of  local  procedure, 
the  services  of  the  best  lawyer  obtainable  should  be  invoked. 


CHAPTER  IX 

CORRESPONDENCE  WITH  LATIN  AMERICAN  MERCHANTS.     REC- 
ORDS AND  FILING 

Introduction. — In  transacting  business  with  Latin  America, 
proper  methods  of  correspondence  will  be  found  valuable  aids  to 
success.  So  important  is  letter  writing  in  the  conduct  of  domestic 
commerce  that  whole  volumes  dealing  with  only  this  topic  have 
been  written  by  authorities.  Jlany  firms  which  have  been  very 
successful  in  the  Latin  American  field  attribute  their  growth 
largely  to  the  painstaking  care  with  which  they  have  conducted 
this  department  of  their  business. 

The  Importance  of  Languages. — As  so  much  has  been  said  and 
written  relative  to  the  use  of  the  language  of  a  people  in  com- 
municating with  its  merchants,  it  seems  almost  trite  to  refer 
to  it.  Every  effort  should  be  made  to  address  the  buyer  of  Latin 
America  in  his  own  language — that  is,  Spanish  to  all  countries 
save  Brazil,  where  Portuguese  is  spoken,  and  Haiti,  where  French 
should  be  used.  In  this  connection,  the  importance  of  differen- 
tiating between  Spanish  and  Portuguese  must  be  emphasized,  as 
there  is  a  marked  dislike  on  the  part  of  Portuguese-speaking  peo- 
ple to  have  their  tongue  confounded  with  Spanish. 

Why  Spanish  Will  Always  Be  a  Great  Factor. — The  population 
of  the  twenty  Latin  American  republics  today  is  50,000,000;  in 
1920  it  will  probably  be  65,000,000;  in  1950,  90,000,000.  It  is 
evident,  therefore,  that  this  great  body  of  people  will  continue  to 
use  Spanish  indefinitely,  and  it  is  unreasonable  to  assume  that  a 
people,  accustomed  to  a  language  so  beautiful  and  with  such 
great  traditions,  will  adopt  the  English  tongue. 

Conforming  to  Latin  American  Standards. — In  dealing  with  the 
Latin  American  people  it  must  be  remembered  that  they  are  a 
different  race  from  ours  with  utterly  distinct  ideas  and  ideals, 
the  opposites,  in  temperament,  of  the  Americans.  To  do  business 
with  them  successfully,  it  is  necessary  to  approach  all  matters  from 

137 


138  EXPOETING  TO  LATIN  AMEEICA 

their  point  of  view  and  to  conform  as  closely  as  possible  to  their 
standards.  The  peculiarities  of  the  Latin  American  people  must 
be  known  and  recognized. 

How  Latin  Americans  Regard  Letters. — Because  of  distance, 
difficulty  of  translation,  and  the  infrequency  of  mail  in  many 
places,  correspondence  is  looked  upon  as  a  most  important  art.  In 
the  business  life  of  the  Latin  American  merchant,  letters  are  events. 
Until  a  very  recent  date,  Latin  American  business  houses  were 
not  accustomed  to  receive  the  masses  of  printed  matter  that  deluge 
the  average  American  business  man.  It  is  still  the  case  today  in 
the  remote  places.  For  this  reason,  merchants  are  accustomed 
to  view  letters  much  more  carefully  than  the  American  dealer. 
They  accordingly  scrutinize  and  criticize  more  severely  than  do 
business  men  in  the  United  States. 

Training  for  Letter  Writing. — The  young  business  man  of  Latin 
America  is  early  taught  the  importance  of  correspondence,  and 
in  the  apprenticeship  that  he  is  accustomed  to  serve  he  is  given 
a  special  training  therein.  Neatness,  care  in  composition,  and 
accuracy  are  exacted,  and  most  letters,  even  from  merchants  who 
have  but  a  limited  education,  are  far  more  carefully  written  than 
is  the  case  in  this  country.  As  an  example  of  the  importance 
accorded  letter  writing  may  be  cited  the  custom  which  obtains  in 
many  Latin  American  business  houses,  where  the  heads  of  the 
firm  still  frequently  use  the  typewriter  and  themselves  write  let- 
ters, particularly  the  more  important  and  confidential  ones. 

The  Importance  of  Stationery. — The  importance  of  proper  sta- 
tionery is  even  greater  in  the  case  of  Latin  American  correspond- 
ence than  in  domestic  correspondence.  Eemembering  that  the 
distant  importer's  confidence  must  be  won  ere  even  a  trial  order 
is  sent,  the  careful  American  exporter  should  make  sure  that  the 
stationery  which  carries  his  sales  arguments  is  not  of  a  character 
to  prejudice  his  prospective  customer  and  create  the  impression 
of  slovenliness  or  carelessness.  Because  of  the  high  rate  of  postage 
the  paper  selected  should  be  light  but  very  firm,  and  it  will  be 
found  economical  to  select  a  stock  that  will  properly  impress  the 
recipient  even  though  tlie  price  may  be  higher.  Extremes  in 
printing,  designs,  and  color  should  be  avoided  and  the  very  best 
mechanical  effect,  that  is,  the  typing,  should  be  insisted  upon. 
The  stationery  used  for  domestic  correspondence  may  be  used,  but 


LATm  AMERICAN  COERESPOJTDENCE  130 

occasionally  the  words  "Foreign  Department"  or  "Latin  American 
Department"  are  added,  and  even  the  name  of  the  manager.  The 
code  used  for  cabling  and  the  cable  address  should  never  be  omitted. 

Attention  to  Little  Details. — The  proper  addressing  of  letters 
can  be  greatly  aided  by  making  sure  of  the  country.  To  that  end 
the  foreign  department  should  be  permitted  to  see  not  only  every 
letter,  but  the  envelope  in  which  it  comes.  When  the  name  of 
the  country  has  been  omitted  from  the  letterhead,  which  often  hap- 
pens, the  stamp  will  supply  this  deficiency. 

Literal  Translations  Should  Be  Avoided. — A  serious  objection  to 
many  letters  written  by  American  houses,  even  though  in  Spanish, 
is  that  they  are  literal  translations.  The  result  is  fearful  and  won- 
derful to  behold.  When  a  letter  is-  drafted  in  English  and  given 
to  a  Spanish-speaking  clerk  for  translation,  it  should  be  with  in- 
structions to  do  it  in  idiomatic  Spanish.  In  this  connection,  the 
importance  of  having  a  well-educated  clerk  should  be  emphasized. 
Many  manufacturers  employ  young  men  whose  native  language  is 
Spanish  but  who,  because  of  lack  of  training,  particularly  in  busi- 
ness correspondence,  cannot  render  adequate  service.  If  the  manu- 
facturer himself  does  not  speak  the  language,  he  should  satisfy 
himself  that  the  clerk  is  competent  in  order  that  his  letters  may 
not  be  held  up  to  ridicule. 

Various  Faults  in  Letter  Writing. — The  Latin  American  people 
who  are  accustomed  to  attend  to  their  business  as  to  their  ordi- 
nary pursuits — in  a  leisurely  manner — object  vigorously  to  the 
terse,  blunt  form  of  correspondence  so  much  in  vogue  in  the  United 
States.  This  is  because  they  are  used  to  the  other  extreme — 
a  more  extensive  salutation,  thoughtfulness,  a  delicate  touch,  and 
what  might  even  be  considered  a  florid  close.  The  average  letter 
received  by  the  Latin  American  merchant  fails  to  impress  him  as 
it  should,  and  he  is  often  completely  at  a  loss  to  account  for  what, 
in  his  estimate,  amounts  to  a  lack  of  respect  or  good  breeding. 
Another  cause  for  much  criticism  of  American  letters  has  been 
the  employment  of  slang  or  idiomatic  trade  phrases  peculiar  to 
this  country.  These,  whether  literally  translated  or  used  as  in 
the  United  States,  are  utterly  unintelligible.  Impolite  or  im- 
perative phrases,  which  so  frequently  creep  into  American  busi- 
ness letters  either  because  of  lack  of  education  or  in  consequence 
of  the  haste  in  which  business  is  conducted,  are  always  extremely 


140  EXPORTING  TO  LATIN  AMERICA 

disagreeable  to  the  sensitive  Latin  American.  The  omission  of 
such  titles  as  Mr.  or  Messrs.,  that  is,  Sr.  or  Sres.,  is  another  source 
of  criticism.  The  Latin  American  is  extremely  punctilious  and 
resents  the  omission  of  the  prefix  in  correspondence.  The  signa- 
ture which  is  stamped  instead  of  written  also  arouses  his  ire. 
Form  letters  are  instantly  recognized,  and  if  it  is  desired  to  build 
a  permanent  business  of  .any  volume  they  should  not  be  used.  An- 
other serious  fault  for  which  American  letters  are  condemned  is 
the  use  of  a  signature  "Per  ,"  instead  of  the  actual  sig- 
nature of  an  official,  accompanied  by  his  title.  It  will  invariably 
prove  advantageous  to  use  the  signature  of  one  of  the  heads  of 
the  concern. 

Portuguese  in  Correspondence  with  Brazil. — Reference  has 
already  been  made  to  the  fact  that  Portuguese  is  the  native  lan- 
guage of  Brazil.  The  Brazilian,  like  the  Portuguese,  is  very  proud, 
and  considers  his  own  tongue  superior  to  Spanish.  The  general 
rules  relating  to  correspondence  with  the  Spanish-speaking  coun- 
tries apply  with  equal  force  to  Brazil. 

Use  of  Other  Lan^ages. — It  is  natural  to  assume  that  the 
language  of  the  country  should  be  used  by  exporters  in  business 
correspondence  with  Latin  America,  even  though  with  houses  of 
foreign  extraction,  such  as  German,  French,  Italian,  English,  etc. 
However,  it  not  infrequently  happens  that  such  foreign  houses 
prefer  to  correspond  in  their  own  tongue.  In  such  cases,  where 
the  preference  can  be  ascertained,  advantage  may  be  derived  from  it 
by  the  American  exporter  who  recognizes  this  preference.  It  may 
be  laid  down  as  a  general  rule  that,  with  the  exception  of  Brazil, 
Spanish  should  be  used  in  business  letters,  even  where  the  princi- 
pals of  the  firm  are  of  other  nationality,  since  many  of  the  em- 
ployees are  natives  and  letters  should  be  intelligible  to  them.  Let- 
ters in  English  are  permissible  when  addressed  to  English  or 
American  firms  whose  correspondence  is  written  in  that  tongue. 

Promptness  a  Necessity. — In  conducting  correspondence  with 
Latin  American  dealers  it  is  highly  important  to  recognize  the 
necessity  of  promptness.  This  is  so  essential  because  of  the  time 
required  for  letters  to  reach  their  destination  and  the  delays  to 
which  they  are  subjected  in  transportation.  Tardiness  in  mail- 
ing documents  covering  a  shipment  or  in  advising  the  importer 
of  its  dispatch  may  prevent  its  prompt  clearance  through  the 


LATIN  AMERICAN  CORRESPONDENCE  141 

custom  house.  A  failure  to  acknowledge  promptly  receipt  of  an 
inquiry  or  request  for  quotation  may  result  in  the  loss  of  an 
order.  The  enterprising  importer  in  Latin  America  is  quick  to 
recognize  and  to  reward  his  American  correspondent  who  attends 
promptly  to  his  inquiries  and  orders  and  such  attention  will  result 
in  increased  business. 

Letters  and  Circulars  in  English  Wasted. — So  much  has  been 
written  on  the  subject  of  sending  advertising  matter  in  English  to 
Latin  American  countries  that  a  repetition  seems  almost  needless. 
While  a  considerable  number  of  merchants  in  all  the  Latin  Ameri- 
can republics  read  or  speak  Engli.sh,  the  great  majority  do  not. 
The  effect  of  letters  and  advertising  matter  in  English  may  be 
understood  when  it  is  realized  how  few  American  houses  could  be 
induced  to  buy  from  French,  Spanish,  or  German  circulars  and 
catalogs,  particularly  if  the  quotations  and  prices  were  in  the 
monetary  standards  of  the  foreign  country  where  they  originated. 

The  Use  of  Follow-up  Letters. — To  those  who  are  unacquainted 
with  Latin  American  trade  and  wonder  whether  the  American 
system  of  follow-up  letters  may  be  used  to  advantage  in  dealing 
with  the  southern  republics,  an  affirmative  reply  may  be  given, 
as  the  principles  underlying  the  solicitation  of  business  there  dif- 
fer in  no  essential  from  the  Americaii.  There  are,  however,  wide 
differences  in  the  application  of  the  follow-up  and  a  considerable 
business  is  now  being  done  as  a  direct  result  of  correspondence. 
When  the  conservatism  and  natural  suspicion  of  the  Latin  Ameri- 
can merchant  toward  unknown  firms  is  considered,  and  it  is 
remembered  that  his  experiences  with  Ainerican  houses  have  fre- 
quently been  unfortunate,  the  value  of  an  intelligent  follow-up 
system  is  apparent. 

The  Kind  of  Follow-up  Letters. — Quality  and  not  quantity  is 
preferable  in  follow-up  work  with  Latin  America.  Just  as  the 
merchant  of  the  southern  republics  judges  critically  the  original 
letters  he  receives  from  his  North  xYmerican  correspondents,  so 
does  he  look  upon  the  follow-up.  It  is  foolish  to  assume  that 
he  is  unaware  of  the  system  being  used,  and  that  anything  will 
do  to  awaken  his  interest.  Even  the  smaller  merchants  in  the 
less  important  places  have  been  receiving  occasionally  for  years 
the  literature  of  American  firms.  As  in  the  case  of  printed  mat- 
ter in   the  United  States,  this  has  been  of  varying  degrees  gf 


143  EXPOETING  TO  LATIN"  AMERICA 

excellence,  and  the  educational  work  which  has  been  done  in  this 
way  makes  it  possible  for  the  dealer  in  Latin  America  to  dis- 
criminate easily  between  what  is  good  and  what  is  deficient.  As 
the  Latin  American  merchant  is  keenly  appreciative,  it  will  be 
readily  seen  that  greater  returns  would  follow  a  well  considered 
follow-up  campaign  directed  to  a  limited  and  selected  number  of 
names,  than  from  an  inefficient,  indiscriminate  circularizing  of  a 
large  list,  with  letters  of  a  low  standard,  lacking  from  every  stand- 
point, in  composition,  execution,  etc.  As  in  the  case  of  domestic 
follow-up  work  the  necessity  of  constant  experiments  is  evident. 
Letters  should  be  carefully  tried  on  groups  of  names  and  tabu- 
lated records  of  results  should  be  kept.  Letters  and  circulars 
should  be  changed  as  circumstances  dictate  in  order  that  maximum 
efficiency  may  be  obtained.  Sufficient  time  and  thought  should  be 
given  this  matter  to  insure  adequate  results. 

Details  in  Mailing  Important. — The  inadequate  system  of  many 
American  houses  frequently  results  in  the  omission  from  letters 
of  price  lists,  quotations,  circulars,  etc.  Catalogs,  too,  are  often 
overlooked.  The  necessity  for  adopting  a  method  which  will  in- 
sure the  sending  of  all  items  referred  to  in  correspondence  is  more 
evident  when  the  factors  of  time,  distance,  and  expense  are  con- 
sidered. For  a  letter  to  reach  its  destination  in  Chile  or  Argen- 
tina requires  fifteen  to  twenty-four  days,  and  for  a  reply  a  similar 
period  may  be  calculated  upon.  It  is  easy  to  understand  the 
attitude  of  a  merchant  who  has  written  for,  and  needs  urgently, 
a  quotation  or  a  price  list  and  catalog.  The  failure  of  an  Ameri- 
can house  to  forward  printed  matter  to  which  reference  is  made 
in  a  letter,  or  to  make  a  quotation,  has  resulted  in  orders  being 
given  to  a  more  careful  foreign  competitor  of  whom  quotations 
were  simultaneously  requested. 

How  to  Insure  the  Mailing  of  Inclosures. — Various  methods 
have  been  suggested  to  safeguard  the  sending  of  inclosures  re- 
ferred to  in  letters.  Those  depend  largely  upon  the  size  of  the 
establishment.  A  safe  rule  to  follow  is  to  have  the  stenographer 
made  responsible  for  the  sending  of  inclosures.  If  it  is  necessary 
to  have  these  sent  from  the  advertising  or  any  other  department, 
a  simple  method  of  checking  should  be  adopted  whereby  the  mail- 
ing clerk  insures  that  catalogs  are  forwarded  the  same  day  that 
the  letter  is  mailed. 


LATIN^  AMERICAN  CORRESPONDENCE  143 

The  Importance  of  Prepaying  Postage. — One  of  the  complaints 
most  frequently  made  against  American  manufacturers  and  ex- 
porters is  that  of  failure  to  prepay  fully  the  postage.  In  most 
instances,  this  is  due  to  carelessness  on  the  part  of  employees, 
insomuch  as  the  manufacturer  who  makes  an  earnest  effort  to 
gain  South  American  trade  would  not  deliberately  overlook  such 
an  important  point.  The  greatest  care  should  be  exercised  that 
all  letters  and  printed  matter  of  every  description  carry  the 
requisite  amount  of  postage,  otherwise  a  fine  is  imposed  at  desti- 
nation, and  this  is  for  double  the  amount  of  the  shortage.  The 
rates  of  postage  to  South  America  are  as  follows: 

Eirst-class  mail,  that  is,  letters  and  all  sealed  envelopes,  5  cents 
for  each  half  ounce. 

On  second-class  (printed  matter),  one  cent  for  two  ounces. 

One  method  of  guarding  against  short  postage  which  has 
proved  very  successful  is  that  of  having  the  stenographer  mark  on 
the  envelope  when  writing  the  letter  a  figure  5,  which  will  draw 
the  attention  of  the  mailing  department  to  the  necessity  of  plac- 
ing thereon  a  five-cent  stamp.  Another  method  that  has  been 
equally  successful  is  to  have  envelopes  printed  with  a  special  mark 
where  the  stamp  is  placed,  which  will  also  make  oversight  less  fre- 
quent. To  guard  against  short  payment  of  postage  many  firms  use 
stationery  of  a  different  color  for  foreign  correspondence. 

Proper  Construction  of  Sales  Letters. — The  construction  of  sales 
letters  to  Latin  America  should  be  considered  with  even  greater 
care  than  are  similar  communications  in  the  United  States  where 
their  importance  has  long  been  recognized.  The  dealer  who  solicits 
a  quotation  can  more  easily  be  induced  to  buy  if  the  advantages 
of  an  article  in  which  he  indicates  an  interest  are  presented  in 
a  clear,  logical,  forceful  manner.  It  must  be  remembered  that  the 
prospective  buyer  is  in  a  distant  country,  and  that  in  addition  to 
the  freight  charges  incurred  by  the  long  voyage,  numerous  out- 
lays for  duty,  custom  agents,  interior  freights,  and  handling  must 
be  incurred  before  he  receives  the  shipment.  As  this  makes  for 
conservatism,  descriptions  should  be  full,  simple,  clear,  and  writ- 
ten in  the  most  logical  manner  in  order  to  win  the  complete  con- 
fidence of  the  importer.  It  is  unreasonable  to  expect  adequate 
returns  if  much  is  left  to  the  imagination  of  the  recipient  or 
merely  stereotyped  phrases  are  used.    Prices  and  discounts  should 


144  EXPORTING  TO  LATIN  AMERICA 

also  be  quoted  with  extreme  care  in  order  that  quotations  may 
not  get  into  the  wrong  hands,  that  is,  firms  or  individuals  whose 
purchases  would  not  entitle  them  to  wholesale  prices.  Orders  are 
sometimes  sent  to  manufacturers  by  individuals  who  wish  to  pur- 
chase only  for  their  own  account ;  if  such  orders  come  to  the  knowl- 
edge of  wholesale  importers,  the  latter  will  not  patronize  the  firms 
who  sell  to  those  whose  trade  they  consider  rightfully  their  own. 

The  TTse  of  Sales  Arg^uments. — The  selling  of  merchandise  by 
mail  is  fast  being  placed  on  a  scientific  basis.  In  no  other  ac- 
tivity in  connection  with  export  trade  is  it  so  important  to  apply 
scientific  principles,  and  this  must  be  done  with  the  Latin  Ameri- 
can point  of  view  always  in  mind.  Letters  that  are  written  for 
the  purpose  of  selling  merchandise  should  strongly  emphasize  the 
advantages  of  articles  which  it  is  sought  to  export  and  the  pros- 
pective buyer  should  be  given  a  clear,  easily  understood  state- 
ment of  the  features  and  purposes  of  the  article  offered.  As  the 
cost  of  correspondence  with  Latin  America  is  so  much  greater  than 
in  the  domestic  field,  the  highest  efficiency  should  be  sought  in 
order  that  waste  in  postage,  printed  matter,  and  stationery  may 
be  eliminated. 

Why  Technical  Terms  Should  Be  Avoided. — In  addition  to 
avoiding  slang,  the  manufacturer  should  use  as  few  technical  or 
trade  terms  as  possible.  This  is  because  such  terms  are  difficult 
to  translate  and  not  readily  understood  by  the  average  reader. 
When  it  is  absolutely  necessary  to  employ  technical  words  the 
manufacturer  should  safeguard  his  description  by  submitting  them 
to  a  technical  native  expert  familiar  not  only  with  Spanish  but 
particularly  with  the  trade,  profession,  or  art  in  which  the  tech- 
nical words  are  used.  The  most  painstaking  care  in  this  mat- 
ter will  result  in  greater  clarity  of  description  and  consequent  bet- 
ter results  from  the  printed  matter.  It  is  far  better  to  authorize 
a  free,  easy  translation  wliieh  conveys  the  full  meaning,  than  to 
confine  the  translator  to  a  literal  rendition  of  difficult  subject- 
matter.  Very  few  catalogs  in  any  technical  line  are  intelligible  in 
a  foreign  language,  even  to  experts.  In  order  to  obtain  the  best 
results  it  should  be  assumed  that  the  recipient  of  correspondence 
or  printed  matter  possesses  no  knowledge  whatever  of  the  subject, 
and  therefore  all  details  should  be  made  absolutely  clear  and  in- 
telligible.   This  applies  not  only  to  terms,  discounts,  and  descrip- 


LATIN"  AMERICAN  CORRESPONDENCE  145 

tions,  but  to  standards  of  measure  and  value.  In  many  instances 
widely  used  trade  terms  and  classifications  possess  distinct  mean- 
ings in  other  countries;  hence  they  should  be  so  expressed  that 
there  is  no  possibility  of  error  or  misunderstanding.  A  safe  rule 
to  follow  is  that  of  insisting  upon-  absolute  clarity  and  completeness 
in  expression. 

Aids  to  Correspondence.  On  page  466  will  be  found  lists  of 
books  relating  to  correspondence  with  Latin  America.  These  will 
prove  of  value  to  the  Foreign  Coriespondence  Department,  as  will 
also  the  lists  of  technical  dictionaries,  etc.,  listed  on  page  467. 

The  Importance  of  Keeping  Records. — In  building  a  business 
with  Latin  America,  much  work  must  necessarily  be  done  which 
brings  no  immediate  results.  If  the  greatest  benefits  for  the  money 
expended  in  correspondence  are  desired,  proper  filing  and  record 
keeping  are  indispensable  adjuncts.  The  use  of  the  material  accu- 
mulated in  correspondence  over  a  period  of  years  is  invaluable,  and 
should  be  kept  in  such  a  form  as  to  be  quickly  available  for  con- 
sultation, especially  to  place  before  a  traveler  about  to  make  a 
first  trip. 

Cards,  Files,  Etc.,  to  Be  Used. — In  beginning  foreign  trade,  pro- 
visions should  be  made  for  a  mailing  list.  This  can  be  most  easily 
kept  on  cards,  and  for  general  purposes  two  sets  of  such  cards  will 
answer.  First,  the  names  of  prospects,  which  are  obtained,  from 
time  to  time,  through  various  sources.  This  should  be  known  as 
the  unverified  list,  for  as  business  goes  on  it  will  be  found  that 
many  such  names  are  only  sources  of  expense.  The  other  file 
should  be  known  as  the  verified  list,  and  in  this  division  are  placed 
the  names  of  firms  of  whose  existence,  desirability,  and  responsi- 
bility there  is  no  doubt.  Such  names  are  those  of  actual  buyers, 
concerns  who  write  for  catalogs  and  are  found  desirable  dealers, 
houses  visited  by  salesmen  or  whose  names  are  supplied  by  gen- 
eral and  local  agents,  banks,  or  other  approved  and  reliable  sources 
of  information.  It  will  be  found  highly  desirable  to  keep  the  two 
groups  separate.  As  the  cost  of  obtaining  names  varies  from  a 
few  cents  to  thirty  or  forty  dollars  each,  the  need  of  care  is  more 
evident. 

The  Character  of  Cards  to  Be  Used. — It  is  impracticable  to  sug- 
gest a  particular  ftjrm  of  card,  as  tliis  will  vary  with  the  business. 
Generally  speaking,  room  should  be  left  for  entering  the  pur- 


146  EXPORTING  TO  LATIN  AMERICA 

chases  from  year  to  year  and  other  data  which  will  prove  of  value 
to  the  sales  department.  Another  form  of  report  which  it  is  highly 
desirable  to  use  in  connection  with  the  mailing  list  is  that  which 
is  supplied  by  the  traveling  salesman  after  visiting  dealers.  Such 
reports  are  filed  according  to  towns,  articles,  or  names  of  dealers, 
as  may  best  meet  the  requirements  of  the  particular  business.  By 
binding  these  in  loose-leaf  holders  they  will  be  found  of  great 
value  for  quick  consultation,  follow-up  work,  and  conferences  with 
salesmen.  Such  forms  may  also  be  used  in  connection  with  local 
or  general  agents. 

The  Importance  of  Properly  Filing  Letters. — In  most  business 
houses  the  importance  of  properly  filing  letters  has  long  been  un- 
derstood. This  is  of  even  greater  importance  in  doing  business 
with  Latin  America,  because  of  the  strangeness  of  the  names  and 
the  greater  possibility  of  error.  The  proper  filing  of  correspond- 
ence with  Latin  American  merchants  is  of  such  value  and  the 
advantages  of  quick  reference  are  so  great,  that  it  should  be  in- 
trusted to  a  person  of  more  than  ordinary  intelligence,  who  may 
be  held  to  strict  accountability.  Where  a  Spanish  stenographer 
is  employed,  the  filing  of  letters  should  invariably  be  intrusted  to 
him. 

Some  Specific  Examples  of  Proper  Filing. — For  the  purpose  of 
simplifying  the  matter  of  filing,  the  following  specific  examples  are 
given  in  order  that  this  may  be  more  readily  understood.  These 
examples  will  take  the  place  of  an  extended  article  which  would 
be  more  difficult  of  comprehension. 


SPANISH  FORM  ENGLISH  EQUIVA-  HOW  TO  FILE 

LENT 

Sr.   Juan  Fernandez         Mr.  John  Fernandez     Under  Fernandez 

Sra.  Juan  Fernandez        Mrs.  John  Fernandez  "  " 

Srta.    Dolores   Fernan- 
dez Miss     Dolores     Fer- 
nandez "  " 

Sres.    Juan  Fernandez 

y  Cia.  Messrs.     John     Fer- 

nandez &  Co.  "  " 

Sres.    Fernandez    Her- 
manos  Messrs.  F.  Bros.  "  - 


LATIN  AMEEICAN  CORRESrONDENCE  147 

SPANISH  FORM         ENGLISH  EQUIVA-  HOW  TO  FILF 

LENT 
Sres.   Juan   Fernandez 

e  Hij-os  Messrs.  J.  F.  &  Sons  Under  Fernandez 

feres,    bucrs.    de   Juan 

Fernandez  Successors    of    John 

Fernandez  "  « 

Sres.  Sobrinos  de  Juan 

Fernandez  Nephews  of  J.  F.  «  « 

Sra.    Viuda    de    Juan 

Fernandez  e  Hijos      Mrs.  Widow  of  J.  F. 

&   Sons  "  « 

Fernandez  y  Gonzalez       F.  and  Gonzalez  «  « 

Fernandez  y   Gonzalez 

^-  ^^  C!.  F.       and       Gonzalez 

Limited  "  « 

Fernandez  y   Gonzalez 

^-  ^-  F.  &  G.  Joint  Stock 

Co.  «  it 

Sr.  Juan  Fernandez  y 

^bregon  Mr.  John  Fernandez- 

Obregon  «  « 

Sres.  Fernandez  y 

Obregon  Messrs.        Fernandez 

and   Obregon  «  « 

La  Compania  Sud 
Americana  de  Ya- 
Po^es  The  South  American 

Steamship  Co.  «       g^^j 

La  Compaiiia  JManu- 
facturera  de  Zapatos 
de  Habana  The     Havana     Shoe 

PIT.  n  r.         ,     ^  ^^^^-  ^°-  "     Manufacturera 

El  i  errocarnl  Central  The  Central  Rail- 
road "      Central 

La  Peria  del  Oriente       The     Pearl     of     the 

Orient  "      Perfa 

Abbreviations  Used  in  Spanish.— In  the  following  table  there 
are  listed  some  of  the  principal  Spanish  prefixes,  suffixes,  and 
words  used  m  correspondence,  together  with  their  abbrevia- 
tions : 


148 


EXPOETING  TO  LATIN  AMERICA 


SP. 

A.NISI 

I 

ABBREVIATION  OF 

ENGLISH  EQUIVA- 
LENT 

Sr. 

Senor 

Mr. 

Sres. 

Senores 

Messrs. 

Sra. 

Seiiora 

Mrs. 

Srta. 

Senorita 

Miss 

La 

Article  (feminine) 

The 

El 

Article  (masculine) 

The 

y  (Used 

in 

certain 

Conjunction 

And 

e       cases 

for  euphony) 

Conjunction 

And 

Cia. 

Compania 

Company 

Hno. 

Hermano 

Brother 

Hnos. 

Hermanos 

Brothers 

Hnas. 

Hermanas 

Sisters 

Hijo 

Son 

Hijos 

Sons 

Sobrino 

Nephew 

Sobrinos 

Nephews 

Sucrs. 

Sucesores 

Successors 

Vda. 

Viuda 

Widow 

S.  en  C. 

Sociedad  en  Coman- 
dita 

Limited  Partnership 

S.  A. 

Sociedad  Anonima 

Joint  Stock  Co. 

s.  s.  s. 

Su  Seguro  Servidor 

Your  loyal  servant 

Su  afmo.  atto.  S, 

,S. 

Su  afectismo   atento 

Your  affectionate  at- 

seguro servidor 

tentive  loyal  serv- 
ant 

Q.  B.  S.  M 

.. 

Que  besan  su  mano 

Who  kiss  your  hand 

The  Portuguese  words  and  abbreviatious  are  very  similar  to  the 
above. 

Prefixes. — Extreme  care  must  be  taken  that  the  correct  prefix 
is  used.  If  the  Latin  American  firm  composed  of  Garcia  y  Alvarez 
(Smith  and  Jones)  is  addressed  "Sr.  Garcia  y  Alvarez,"  it  reflects 
greatly  on  the  intelligence  of  the  American  exporter.  In  many 
Latin  American  countries  the  use  of  the  mother's  name  in  addi- 
tion to  the  surname  is  very  common.  For  that  reason,  it  is  essen- 
tial to  distinguish  between  such  combinations  as  Sr.  Juan  Fernan- 
dez y  Obrcgon,  which  corresponds  to  Mr.  Juan  Fernandez-Obregon 
(Obregon  being  the  mother's  name,  or  that  of  another  relative), 
and  Sres.  Fernandez  y  Obregon,  which  means  Messrs.  Fernandez 
and  Obregon.     Indexing  in  such  cases  must  be  done  under  the 


LATIN  AMERICAN  CORRESPONDENCE  149 

first  name.  The  prefix  Sucrs.  is  occasionally  met  with,  its  mean- 
ing being  "Successors  of,"  and  is  adopted  by  firms  who  wish  to 
capitalize  the  standing  and  good  will  of  their  predecessors.  In 
filing,  letters  should  be  placed  under  the  name  of  the  firm,  as, 
Sucrs.  de  Alvarez  Hnos.  shoidd  be  filed  under  Alvarez.  Another 
prefix,  Vda.,  or  widow,  is  often  noted.  Such  letters  should  not 
be  filed  under  the  word  "widow,"  but  under  the  name  of  the  de- 
ceased husband ;  thus  Dolores,  Viuda  de  Sanchez,  should  be  indexed 
under  Sanchez. 

Articles. — The  use  of  the  article  in  Spanish  is  very  common. 
The  word  compania,  which  corresponds  to  "company,"  must  al- 
ways be  preceded  by  the  feminine  La.  Thus  the  South  American 
S.  S.  Co.  becomes  La  Compafiia  Sud  Americana  de  Vapores;  also 
La  Perla  del  Oriente,  the  Pearl  of  the  Orient,  a  store  name.  In- 
dexing must  never  be  done  under  the  prefix,  but  under  the  name 
of  the  qualifying  adjective,  as  Sud  in  the  first  instance  and 
Perla  in  the  second.  The  masculine  El  also  has  its  place;  thus  the 
Central  Railroad  Co.  becomes  El  Ferrocarril  Central. 

Conjunctions. — The  conjunction  occurs  very  often  in  firm  names 
and  should  be  properly  used.  Generally  it  is  the  letter  y  (and), 
but  sometimes  for  the  sake  of  euphony  the  letter  e  is  employed. 
Letters  must  never  be  filed  or  indexed  under  the  conjunction. 

Suffixes. — In  correspondence  with  Latin  America  sufiixes  are 
frequently  used.  Sometimes  the  abbreviation  Sucrs.  appears  after 
rather  than  before  the  firm  name.  The  letters  S.  A.,  meaning 
Sociedad  Anonima,  are  very  common,  being  a  form  of  business 
articles  corresponding  in  a  measure  to  a  corporation  or  joint 
stock  company.  The  letters  S.  en  C.  are  for  Sociedad  en  Coman- 
dita,  which,  broadly  translated,  means  "Limited  Partnership." 
When  such  partnerships  are  found  in  Latin  America  it  is  often 
the  custom  to  include  an  individual  whose  interest  is  a  limited 
one  and  when  the  articles  are  filed  before  the  proper  authorities 
the  amount  of  his  liability  is  registered.  The  liability  of  the 
silent  partner  is  thus  limited  to  the  amount  of  the  sum  legally 
registered,  no  matter  what  may  be  his  private  fortune.  This  is 
a  very  common  practice  in  Latin  America.  Wlien  letters  are  in- 
dexed suffixes  must  be  disregarded. 

Addressing". — In  addressing  letters  the  necessity  for  the  singular 
or  plural  is  indicated  by  the  general  firm  name. 


150  EXPOETIXG  TO  LATI^T  AMEEICA 

Salutation. — This  varies  in  form  but  in  general  a  cordial  one  is 
preferable.  "Dear  sir"  or  "Gentlemen"  are  often  followed  by 
"Friends"  (Amigos)  :  thus,  Muy  Sres.  mios  y  amigos,  or  Muy 
estimados  Sres.  y  amigos.  Esteemed  Sirs  and  friends.  The  Latin 
American  is  by  temperament  very  appreciative  and  no  danger  is 
incurred  by  cordiality. 

The  Close. — Although  greater  brevity  now  marks  the  correspond- 
ence of  the  larger  business  institutions  than  formerly,  it  will  be 
found  that  the  majority  of  business  men  in  Latin  America  look 
with  favor  upon  a  florid  close.  The  custom  of  closing  letters  with 
the  curt  "Yours  respectfully"  has  not  been  widely  adopted  and  it 
is  by  far  the  safer  plan  to  end  more  cordially.  Characteristic 
closes  of  this  character  are :  "Please  accept  the  sincere  assurances 
of  our  very  highest  regard  and  if  we  can  serve  you  in  any  way 
do  not  hesitate  to  command  us."  "We  beg  to  convey  to  you 
assurances  of  our  high  appreciation  and  to  place  ourselves  un- 
conditionally at  your  orders."  In  place  of  the  usual  "Yours  truly" 
there  are  used  the  letters  S.  S.  S.  or  Su  afmos.  atto.  S.  8.  or  Su 
afmos.  amigos  y  attos.  S.  S.  These  phrases  are  translated  in  the 
vocabulary  and  are  sometimes  followed  by  the  letters  Q.  B.  S.  M., 
"Who  kiss  your  hand,"  although  the  latter  form  is  not  now  so 
common.  While  a  happy  medium  may  be  reached,  it  is  safer 
to  err  on  the  side  of  cordiality  than  abruptness.  A  study  of  Latin 
American  business  correspondence  will  not  only  be  found  highly 
valuable  from  a  practical  standpoint,  but  of  intense  interest  as 
well. 

Miscellaneous  Information. — In  order  to  determine  the  time 
required  for  letters  to  reach  the  principal  Latin  American  coun- 
tries, a  table  on  page  526  of  the  Appendix  will  be  found  useful. 
On  page  524  there  will  be  found  the  details  of  the  money  order 
fees  to  countries,  the  countries  in  which  they  are  payable,  the 
use  of  reply  coupons,  and  the  countries  in  which  they  may  be 
used.    A  list  of  aids  to  correspondents  will  be  found  on  page  466. 


CHAPTER  X 

HANDLING    OF    ORDERS.      PACKING    AND    MARKING.      MARINE 

INSURANCE 


HANDLING  OF  ORDERS 

Introduction.— In  the  past  much  negligence  and  willful  substitu- 
tion-have marked  the  filling  of  Latin  American  orders.  Many 
American  manufacturers  have  proceeded  on  the  assumption  that 
anything  was  good  enough  for  the  importers  of  the  southern  re- 
publics, whereas  in  reality  they  are  often  even  more  critical  than 
the  merchants  at  home.  This  is  naturally  due  to  the  fact  that 
shipments  from  abroad  incur  heavy  outlays  for  freight  and  duty 
which  materially  increase  costs. 

All  orders  from  Latin  American  countries  should  be  filled  with 
the  utmost  care  and  this  is  especially  true  of  first  orders;  even 
though  small,  they  often  lead  to  important  business.  Further- 
more, the  methods  of  the  manufacturer  and  his  real  attitude  to- 
ward export  business  will  be  measured  by  the  manner  in  which 
first  orders  are  executed.  For  this  reason,  also,  shipments  should 
be  made  promptly.  In  the  event  that  items  are  not  in  stock 
and  a  delay  is  inevitable,  the  dealers  should  be  notified  immedi- 
ately; there  is  no  possibility  of  building  a  business  in  Latin 
America  if  orders  are  held  without  notification  of  the  importer. 
Substitutions  should  never  be  made  without  the  sanction  of  the 
purchaser,  as  the  latter  resents  any  changes  made  without  his 
permission  and  serious  difficulties  often  arise  because  manufac- 
turers do  not  observe  this  simple  rule. 

The  Effect  of  Carelessness.— Carelessness  in  important  details, 
such  as  the  omission  of  weights,  particularly  of  packing  mate- 
rial, is  also  productive  of  difficulties.  Importers  frequently  com- 
plain that  the  material  used  for  packing  weighs  more  than  the 
amount  specified  in  the  consular  invoice,  and  misunderstandings 
with  customs  officials  naturally  arise.    The  sending  of  merchandise 

151 


152  EXPOETING  TO  LATIN  AMEEICA 

which  is  different  from  that  ordered  is  likewise  the  direct  cause 
of  loss  of  customers.  As  an  instance  of  this  nature  may  be  cited 
the  experience  of  a  South  American  firm  which  ordered  six  auto- 
mobiles of  a  certain  grade,  for  which  it  had  contracted  with  the 
understanding  that  they  were  to  be  25  horsepower  each.  The 
American  manufacturer,  instead  of  writing  that  the  exact  machine 
specified  was  not  on  hand,  shipped  six  machines  of  30  horsepower 
each,  and  billed  them  at  the  increased  price.  As  the  transaction 
in  question  was  a  contract  between  the  importer  and  his  govern- 
ment, the  former  suffered  loss  and  naturally  will  be  careful  to 
avoid  further  transactions  with  the  same  manufacturer. 

The  Importance  of  Packing. — There  is  no  element  in  connection 
with  the  development  of  Latin  American  business  that  has  been 
the  subject  of  more  caustic  comment  than  that  of  the  packing 
employed  by  American  manufacturers.  American  Consuls,  trav- 
elers in  Latin  America,  and  merchants  themselves  for  many  years 
have  complained  bitterly  regarding  the  carelessness  and  the  appar- 
ent unwillingness  of  American  manufacturers  to  observe  specific 
instructions  and  recommendations  in  this  particular.  The  great 
superiority  of  European  over  American  packing  has  frequently 
been  quoted.  However,  a  distinct  improvement  has  occurred  dur- 
ing the  last  few  years,  and  it  is  apparent  that  American  manu- 
facturers are  now  giving  this  subject  far  more  consideration  and 
study  than  was  formerly  the  case. 

Directions  Should  Be  Followed. — The  business  man  who  studies 
conditions  in  Latin  America  realizes  why  such  particular  instruc- 
tions accompany  the  orders  and  knows  that  they  would  not  be 
given  without  good  cause.  If  the  manufacturer  is  told  to  supply 
certain  weights,  such  as  gross,  tare,  and  net  in  kilos,  he  should 
do  so;  if  unwilling  to  give  this  information,  he  should  make 
no  attempt  to  do  business  in  Latin  America.  If  instructed  to 
limit  the  size  or  weights  of  his  packages,  he  should  likewise 
comply  or  make  no  shipment.  Such  factors  as  tariffs,  and  land- 
ing and  transportation  facilities  influence  the  giving  of  these 
directions,  and  a  failure  to  observe  them  is  unpardonable.  A 
careful  study  of  the  basic  conditions  will  make  even  the  most 
obtuse  or  indifferent  packer  or  shipping  clerk  in  an  inland  city 
understand  the  difference  between  domestic  and  foreign  condi- 
tions. 


PACKING  AND  MARKING  153 


PACKING  AND  MARKING 

Factors  Affecting  Packing. — As  a  key  to  the  study  of  the  pack- 
ing problem  the  following  sketch  of  the  factors  involved  will 
prove  helpful : 

1.  Means  of  transportation. 

(a)  Eail  and  water,  necessitating  extra  handling. 

(b)  Transshipment. 

(c)  Animal  transport,  cart,  mule,  llama,  burro,  oxen,  with 

need  of  loading  and  unloading  for  rests  and  feeding 
of  animals.  Native  man  carrier  on  foot  or  in  canoes 
for  rivers,  lakes,  and  lagoons. 

2.  At  destination.     Eainy  season,   constant  dampness  because 

of  tropical  conditions,  heavy  mountain  dews,  etc. 

3.  Passage  of  sliipnient  through  tropical  climate  en  route  to 

destination. 

4.  The  conditions  in  ports. 

(a)  Lightering. 

(b)  Unloading  from  ship  to  wharf. 

5.  Physical  characteristics  of  the  country. 

(a)  Transportation  on  rivers. 

(b)  Over  narrow  mountain  trails. 

(c)  Through  streams  which  must  be  forded. 

(d)  Possible  necessity  for  leaving  in  warehouse  in  tropical 

climate. 

(e)  Protection  against  pilferage. 

6.  Effect  of  customs  duties. 

The  farsighted  business  man  who  is  desirous  of  establishing 
his  export  business  on  a  permanent  basis  will  insist  that  the  em- 
ployee in  charge  of  his  foreign  trade  shall  personally  superintend 
the  packing  and  shipping  of  his  products.  By  thus  definitely  plac- 
ing the  responsibility  he  may  be  assured  that  before  shipments 
leave  they  have  been  carefully  inspected  to  guarantee  their  proper 
arrival  at  destination.  By  this  means  he  also  insures  the  giving 
of  proper  instructions  for  each  individual  shipment  after  a  study 
of  the  conditions  relating  to  cost  liave  been  considered. 

How  to  Determine  the  Packing. — The  questions  which  a  mer- 
chant must  answer  when  preparing  to  make  a  shipment  are  these: 


154  EXPOETING  TO  LATIN  AMEEICA 

1.  Whether  the  ultimate  destination  is  a  seaport,  or  is  the  ship- 
ment to  be  carried  into  the  interior? 

2.  Whether  customs  examinations  and  clearance  are  made  at 
port  or  at  an  inland  city? 

3.  To  what  climatic  conditions  will  shipment  be  exposed  at 
every  stage  of  transit? 

4.  What  facilities  exist  for  transferring  of  shipment  from 
steamer  to  shore? 

.  5.  What  methods  of  transportation  will  be  used  to  carry  ship- 
ments to  ultimate  destination,  i.e.,  railroad,  steamship,  muleback, 
ox  cart,  etc. ;  and  to  what  exposure  will  shipment  be  subject  until 
final  delivery? 

6.    How  will  tarifp  affect  the  packing  requirements? 

Some  Conditions  Affecting  Packing. — For  the  purpose  of  deter- 
mining the  necessities  the  best  atlas,  shipping  guide,  and  other 
sources  of  information  should  be  constantly  at  hand.  Shipments 
to  most  Latin  American  republics  must  be  unloaded  from  the 
railroad  car  to  the  ship,  and  upon  arrival  at  port  they  must 
be  unloaded  and  placed  on  the  wharf.  Not  infrequently  they  are 
subject  to  transshipment,  i.e.,  passed  through  several  ports  requir- 
ing a  number  of  unloadings  and  reloadings.  As  this  work  is  usu- 
ally done  carelessly,  a  shipment  is  liable  to  serious  damage  unless 
properly  packed. 

Proper  Handling  on  Shipboard. — Besides  packing  carefully  in 
order  to  withstand  the  handling  to  which  shipments  are  subjected 
during  the  processes  of  loading  and  primitive  methods  of  transpor- 
tation, the  possibility  of  damage  while  in  the  hold  of  a  ship  should 
also  be  considered.  Very  often  stormy  weather  so  affects  the  cases 
that  they  are  shifted  about  and  may  be  seriously  injured  by  the 
miscellaneous  cargo  of  boxes  and  barrels  which  are  loaded  into 
the  compartments  of  ships. 

Possibility  of  Damage  in  TJnloading. — The  conditions  at  the 
port  of  entry  must  always  be  reckoned  Math.  In  many  places,  par- 
ticularly on  the  west  coast,  wharfs  are  entirely  lacking  and  ships 
are  unloaded  in  the  open  roadsteads.  Merchandise  is  discharged 
into  lighters  or  barges  and  not  only  may  damage  ensue  from 
the  impact  with  which  freight  is  swung  into  the  lighter,  but  also 
from  heavy  rains  that  may  be  falling  during  the  process  of  un- 
loading.    Not  infrequently  packages  inadvertently  roll  into  the 


PACKIXG  AXD  MARKING  16S 

sea  and  may  be  greatly  injured  unless  so  packed  that  they  are  im- 
pervious to  moisture. 

The  Lighter,  and  How  Freight  Is  Handled  Therein. — Lighters 
are  large  flat-bottomed  barges  with  adjustable  covers  to  be  used 
in  rainy  weather,  and  shipments  to  be  carried  to  shore  are  low- 
ered to  them  by  steamer  cranes,  usually  very  carelessly.  This  is 
the  acid  test  of  packing,  for  all  shapes,  sizes,  and  weights  of  pack- 
ages, bales,  and  barrels  are  removed  from  the  hold  of  the  boat  and 
put  into  the  barge.  A  crane  is  used  in  connection  with  a  sling, 
the  latter  usually  being  made  of  rope.  This  sling  is  filled  to  the 
utmost  and  often  barrels  of  cement,  coils  of  barbed  wire,  etc.,  are 
let  down  on  a  lot  of  miscellaneous  merchandise.  The  moment  the 
ropes  of  the  sling  loosen,  the  contents  roll  and  tumble  down  for 
fifteen  or  twenty  feet  into  the  corners  of  the  barge,  hitting  all 
manner  of  cases  already  in  place.  At  the  custom  house  there 
is  a  second  handling  of  almost  the  same  character.  In  most  ports, 
particularly  in  smaller  ones,  hand  cranes  are  used  and  very  care- 
lessly operated.  The  raising  and  lowering  being  badly  done,  heavy 
packages,  particularly,  are  severely  knocked  and  jarred.  If  per- 
chance they  light  upon  some  piece  of  iron  or  stone  which  happens 
to  be  lying  about  the  landing,  the  sides  of  the  cases  are  often 
smashed. 

The  Effect  of  High  Temperature  and  Moisture. — The  climate  of 
the  country  to  which  shipments  are  made  and  the  routes  along 
which  freight  is  transported  frequently  are  lost  sight  of.  Even 
though  a  shipment  may  be  consigned  to  a  mountain  city,  it  may 
pass  through  the  equatorial  regions  en  route,  and,  unless  care  is 
taken,  the  contents  may  be  seriously  damaged  by  the  heat. 

For  instance,  shipments  consigned  to  the  interior  of  Colombia 
have  a  long  river  transport  from  Barranquilla  toward  the  upper 
regions  of  the  River  Magdalena.  Naturally,  being  so  near  the 
equator,  the  temperature  is  frequently  in  excess  of  100  degrees 
Fahrenheit,  and  there  is  so  much  moisture  in  the  atmosphere 
that  it  penetrates  cases  and  causes  mold  unless  the  greatest  care 
is  taken.  This  is  often  overlooked  by  inexperienced  shippers  who 
use  nails  in  fastening  tarpaulins  or  burlap  covers  over  boxes  in 
order  to  give  them  strength.  Because  of  the  hot  moist  conditions 
the  nails  are  quickly  rusted,  the  tarpaulin  rots  and  falls  away. 
All  coverings  of  this  sort  should  be  sewed. 


156  EXPORTING  TO  LATIN  AMERICA 

Another  example  is  the  case  of  a  certain  shipment  of  lard  in 
tins  from  an  interior  point  in  Mexico.  Because  of  a  mistake  of 
forwarding  it  was  delayed  several  weeks  in  Vera  Cruz.  The  ex- 
treme heat  forced  open  the  tins  by  expansion  and  caused  a  loss 
by  decomposition  and  overflow. 

Conditions  of  Animal  Transportation. — In  many  places  the 
methods  of  carrying  the  freight  are  extremely  primitive  and  differ 
according  to  the  section.  As  the  size  of  the  load  of  the  different 
animals  varies,  this  is  a  serious  problem.  Thus,  a  llama  (frequently 
used  in  Peru  and  Bolivia)  carries  about  100  pounds,  while  the 
burro  transports  from  150  to  200  pounds  (preferably  150  to 
160  pounds),  and  the  mule  is  capable  of  carrying  from  200  to 
250  pounds. 

The  average  load  for  a  pack  mule  where  the  trails  are  poor  is 
approximately  200  pounds.  Where  the  trails  are  better,  it  is  250 
pounds.  (The  ropes  with  which  packages  are  fastened  to  the 
mule's  back  are  drawn  very  tightly  and  unless  the  packages  are 
strong  they  may  be  damaged  by  the  process.)  Such  lots,  how- 
ever, must  be  in  units  and  exactly  halved,  so  that  they  may  be 
equally  divided  across  the  mule's  back.  The  extreme  length  of 
the  package  must  not  be  over  three  feet  and  the  other  dimensions 
should  not  go  over  fourteen  inches  in  any  direction.  Packages 
which  have  no  square  edge,  like  bales  of  cloth,  are  easier  to  handle. 
The  matter  of  dimension  is  important  because  of  the  narrow  moun- 
tain trails. 

In  the  interior,  where  resort  must  be  had  to  rivers  and  lagoons, 
native  boatmen  are  employed;  the  craft  generally  used  is  a  nar- 
row dugout  with  only  a  limited  carrying  capacity. 

Dangers  of  Primitive  Transportation. — Many  shipments  to  Latin 
America  are  ultimately  designed  for  interior  points  which  can  be 
reached  only  by  narrow  mountain  trails.  These  are  often  traversed 
only  by  burro  or  native  freight  carriers  who  must  bear  the  burdens 
on  the  back.  The  constant  loading  and  unloading  is  a  severe 
strain  on  packages.  Naturally  they  are  subject  to  damage  by 
scraping  the  abutting  rocks,  trees,  etc. ;  also  from  falls  and  the 
general  rough  handling  which  such  methods  of  transportation 
entail. 

The  temptation  to  enter  cases  is  strong,  particularly  as  they 
Irequently   lie   exposed   to   the   depredation   of    thieves   who    are 


PACKING  AND  MARKING  157 

very  skillful.  Strength  and  perfect  protection  against  robbery 
must  be  carefully  sought. 

Protection  against  Damage  on  Carts. — When  freight  is  trans- 
ported on  carts  drawn  by  oxen  over  very  bad  roads,  the  constant 
jolting,  often  for  seven  to  fourteen  days,  may  work  great  dam- 
age. Such  carts  are  for  the  most  part  uncovered  and  heavy  rains 
may  cause  serious  loss.  Frequently  small  streams  or  rivers  have 
to  be  forded  and  the  possibility  of  injury  by  water  is  a  constant 
danger. 

Necessity  for  Protection  against  Water. — The  most  serious 
problem  in  shipping  is  moisture,  which  may  affect  shipments  in 
a  variety  of  ways.  Not  only  rain  but  salt  water  resulting  from 
spray  or  leakage  in  the  damp  holds  of  ships  may  be  responsible 
for  damage.  A  waterproof  lining  or  wrapping  before  the  case  is 
sealed  will  afford  the  necessary  protection  and  will  also  prevent 
damage  if  the  package  is  immersed  in  the  sea  as  the  result  of  tackle 
slipping  while  the  shipment  is  being  unloaded.  It  is  for  this 
reason  that  oilpaper  should  be  freely  used,  and  many  manufac- 
turers have  found  it  advisable  to  use  even  oilcloth.  The  latter  is 
preferred  by  some  importers  inasmuch  as  it  has  a  definite  value, 
since  it  can  be  sold  even  if  at  a  reduction.  The  best  protection 
against  dampness  or  moisture  is  the  zinc  lining  in  a  packing  case, 
although  linings  are  sometimes  made  of  tin.  When  such  linings 
are  hermetically  sealed,  the  contents  are  absolutely  impervious  to 
moisture.  Though  it  is  possible  to  obtain  insurance  against  water 
damage,  it  is  better  to  make  packages  moisture  proof,  as  is 
generally  done  with  European  shipments.  By  so  doing  the  con- 
signee is  spared  the  annoyance  and  trouble  incident  to  making 
a  claim. 

How  to  Avoid  Damage  from  Rust. — One  of  the  commonest 
causes  of  damage  to  shipments  is  rust.  Not  alone  is  a  shipment 
three  to  six  weeks  en  route  inadequately  protected  from  rain  and 
always  subject  to  damage,  but  also  it  may  remain  for  a  long  time 
in  a  warehouse  in  the  original  cases,  and  it  can  be  easily  under- 
stood what  will  be  its  condition  unless  it  has  been  protected  against 
rust  in  a  thoroughly  efficient  manner.  The  methods  of  protecting 
it  are  those  outlined. 

How  to  Obtain  Information  Regarding  Packing, — The  manu- 
facturer  who   is  desirous  of  obtaining  all   possible   information 


158  EXPORTING  TO  LATIN  AMERICA 

regarding  packing,  and  wishes  to  comply  with  requirements,  has 
abundant  means  of  ascertaining  what  he  needs  to  know,  for  he 
may  secure  this  information  as  follows: 

1.  By  addressing  the  Bureau  of  Foreign  and  Domestic  Com- 
merce at  Washington  or  its  branch  offices;  if  information  is  not 
on  hand,  it  will  be  obtained  from  the  Consul  or  commercial  agents. 

2.  Letters  to  the  principal  importers  of  the  articles  in  the 
various  cities  and  countries.  Such  names  may  be  obtained  as 
indicated  in  Chapter  XVI. 

3.  The  information  may  be  gained  from  customers  and  gen- 
eral or  local  agents  to  whom  the  sale  of  the  product  has  been 
given;  also  from  commercial  organizations,  export  journals, 
etc. 

The  Influence  of  Tariff. — It  is  not  only  because  of  the  difficulties 
of  transportation  and  the  possible  effect  of  rough  handling  to 
which  packages  are  subject  that  the  question  of  proper  packing 
must  be  considered.  In  many  of  the  Latin  American  countries  the 
tariff  plays  an  important  part,  and  for  this  reason  the  manu- 
facturer should  carefully  consider  it.  In  order  that  this  may  be 
more  easily  understood,  a  specific  example  is  given.  In  the  re- 
public of  Venezuela  manufactures  pay  a  particular  rate  of  duty. 
This  duty  is  calculated  on  gross  weight.  By  the  latter  is  meant 
the  exact  weight  not  only  of  the  article  itself  but  of  the  package. 
Thus,  the  importer  has  to  pay  duty  not  alone  on  the  product  he 
imports  but  on  the  paper  with  which  it  is  wrapped,  the  string 
with  which  this  paper  is  tied,  the  pasteboard  box  surrounding  it, 
and  finally  the  wooden  case  itself.  Wliere  the  rate  of  duty  is  high 
(as  it  usually  is  when  it  is  specific),  the  possibilities  for  the  sale 
of  a  given  article  would  be  adversely  affected.  Where  the  weight 
of  a  package  is  so  important,  the  manufacturer  may  frequently 
gain  considerable  advantage  by  devising  a  means  of  insuring  the 
delivery  of  his  product  at  an  absolute  minimum  of  expense,  not 
alone  of  freight  but  of  duty  as  well.  The  difference  in  duty  which 
results  from  a  more  economical  packing  frequently  enables  him 
to  command  a  large  trade. 

Avoiding  Trash  in  Packing. — It  is  for  the  foregoing  reasons  als'o 
that  the  use  of  excelsior,  old  paper,  cardboard  boxes,  etc.,  should 
be  avoided.  The  case  sliould  be  shaped  to  conform  as  closely  as 
possible  to  its  contents  and  thereby  assure  a  saving  not  alone  in 


PACKING  AND  MARKING  159 

the  weight  and  the  packing  but  likewise  in  freight,  which  on  steam- 
ship lines  is  invariably  calculated  on  the  basis  of  cubic  contents. 

It  is  very  important,  in  order  to  save  excessive  freight  charges, 
to  pack  goods  in  the  smallest  possible  bulk.  Loose  packing,  par- 
ticularly of  dry  goods,  etc.,  adds  much  to  the  costs.  When  the 
shipments  are  made  in  tin  containers,  such  as  salmon,  etc.,  they 
should  be  surrounded  by  sawdust  or  other  packing.  If  this  is  not 
done,  the  rough  handling  to  which  cases  are  subjected  results  in 
damage  to  contents  of  the  tins. 

The  Importance  of  Separation  in  Packing. — In  practically  all 
the  Latin  American  countries  the  tariff  laws  provide  for  duties 
based  on  different  classifications.  Frequently  the  orders  from  gen- 
eral merchants  will  include  items  which  appear  in  almost  all  of 
the  classifications  and  on  which  the  duty  would  vary  from  10  cents 
per  kilogram  to  $3.00  per  kilogram.  In  the  event  that  it  seemed 
desirable,  for  the  sake  of  economy,  to  place  a  small  package  in 
the  same  case  with  the  other  merchandise,  the  presence  of  the 
small  article  would  make  necessary  the  assessment  of  the  duty  on 
all  the  items  in  the  case  on  the  basis  of  the  small  article,  even 
though  the  latter  took  the  highest  classification. 

As  a  concrete  example  may  be  cited  the  following:  if  a  small 
box  of  jewelry  were  placed  in  a  large  case  of  miscellaneous  mer- 
chandise consigned  to  Venezuela,  the  duty  would  be  charged  on 
the  basis  of  the  jewelry. 

It  will  frequently  be  found  highly  advantageous  to  pack  and 
ship  separately  articles  composed  of  different  materials.  Where 
the  trimmings  of  an  article  are  of  a  different  material  from  the 
article  itself,  it  is  often  best  to  make  two  different  packages  and 
ship  them  separately  because  of  lower  duty. 

Differentiating  Between  Goods. — When  various  classes  of  mer- 
chandise are  packed  in  the  same  case,  extreme  care  must  be  taken 
to  list  them  in  the  invoice  under  the  proper  classification.  There 
should  be  obtained  the  weights  not  only  of  the  goods,  but  also 
of  the  cartons  or  paper  surrounding  them. 

Confining  Packing  to  One  Class  of  Goods. — As  the  tariff  in  cer- 
tain countries  makes  impossible  the  importation  of  different  kinds 
of  products  in  the  same  case,  the  manufacturer  should  carefully 
observe  shipping  directions  to  this  effect.  When  instructed  to 
pack  only  one  kind  of  goods  in  a  case,  he  should  do  so,  else  a  heavy 


160  EXPORTING  TO  LATIN  AMEBIC  A 

fine  is  lil\ely  to  result.  If  shipping  directions  are  correctly  fol- 
lowed and  complications  ensue,  the  manufacturer  cannot  then  be 
held  responsible. 

The  Importance  of  Weights. — The  importance  of  obtaining  and 
specifying  the  correct  weight  cannot  be  exaggerated,  inasmuch  as 
the  duty  in  many  countries,  and  on  a  multitude  of  articles,  is 
based  on  weight.  In  order  that  there  may  be  no  misunderstanding 
on  this  point,  it  is  important  that  packing  and  shipping  clerks 
be  thoroughly  instructed  as  to  the  exact  meaning  of  these  terms, 
and  that  the  weights  be  placed  on  invoices,  packing  lists,  mani- 
fests, and  other  papers,  where  called  for. 

Gross  Weight. — This  means  the  weight  of  the  goods  with  all 
their  outside  and  inside  coverings,  without  deducting  the  mate- 
rials used  for  packing  such  as  cardboard,  paper,  excelsior,  netting, 
straw,  shavings,  hoops,  etc. 

Net  Weight. — Net  weight  means  the  actual  weight  of  the  goods 
without  any  exterior  or  interior  packing. 

Legal  Weight. — This  means  the  weight  of  the  goods  together 
with  that  of  their  interior  packing,  such  as  cardboard  and  wooden 
boxes,  wrappers  of  paper  or  other  material,  receptacles,  etc.,  in- 
closed in  the  outer  packing  case  in  which  goods  are  shipped.  In 
many  countries,  in  calculating  the  legal  weight,  no  account  what- 
ever is  taken  of  the  straw,  excelsior,  strings,  etc.,  in  which  the  ex- 
terior packages  are  placed,  or  of  the  weight  of  the  outside  packing 
case. 

Different  Interpretations  of  Weights. — The  general  interpreta- 
tion of  net,  gross,  and  legal  weights  is  the  one  given  in  the  preced- 
ing paragraph.  However,  it  happens  that  the  laws  in  certain  of 
the  countries  determine  the  exact  manner  in  which  these  weights 
are  to  be  calculated  and  the  manufacturer  should  consult  this 
table  in  order  to  protect  his  interests. 

The  Mexican  definition  of  net  weight  is  as  follows :  "The  weight 
of  the  article  itself  without  any  covering  whatever."  The  defini- 
tion of  legal  weight  is:  "The  weight  of  the  article  plus  the  paper 
box,  flask,  bottle,  etc.,  in  which  the  articles  are  usually  kept  in 
stock." 

The  tariff  law  of  Nicaragua  defines  the  net  weight  as  follows: 
"The  actual  weight  of  the  goods,  free  from  all  packing  receptacles 
or  wrappers." 


PACKING  AXD  MAEKING  161 

Different  Methods  of  Applying  tlie  Duty. — When  duty  is  col- 
lected on  legal  weight  and  goods  are  not  inclosed  in  interior  pack- 
ages but  in  one  outside  inclosure,  only  the  intrinsic  weight  of  such 
goods  is  considered  as  legal  weight.  It  should  be  borne  in  mind 
when  packing  goods  of  different  classes  in  the  same  case  that  the 
customs  on  goods  dutiable  on  gross  weight  will  be  calculated  in 
proportion  to  the  legal  weight  of  each  kind  of  goods.  Duty  is 
collected  on  the  total  weight  of  goods  which  are  dutiable,  on  gross 
weight  when  they  are  imported  with  any  kind  of  packing,  and 
the  duty  will  also  be  collected  on  the  total  weight  when  packed 
in  a  material  which  is  likewise  dutiable.  When  goods  which  pay 
a  duty  on  net  weight  are  imported  in  ordinary  packages,  duty 
will  not  be  collected  on  such  packages.  When  duty  is  collected  on 
goods  according  to  legal  or  gross  weights,  it  is  collected  on  the 
packages  in  which  they  are  imported,  just  as  on  the  goods. 
In  practically  all  the  Latin  American  republics,  when  industrial 
machinery  or  apparatus  is  imported  accompanied  by  accessories  or 
parts  exceeding  in  quantity  the  actual  requirements,  and  such 
accessories  are  classed  in  the  tariffs  of  the  countries,  a  duty  is  col- 
lected on  the  surplus  according  to  the  classifications  of  the  tariff. 

The  Size  of  Packing  Cases. — Because  of  the  conditions  attending 
the  loading  and  unloading  of  shipments  in  Latin  American  coun- 
tries, the  use  of  medium-sized  cases  is  strongly  advised.  The  fa- 
vorable dimensions  are  three  by  two  feet,  particularly  where  the 
contents  are  not  too  heavy.  When  goods  are  packed  in  smaller 
boxes,  as  is  the  case  with  starch,  catsup,  malted  milk,  etc.,  they 
should  be  strongly  crated  and  packages  made  of  the  size  men- 
tioned. This  is  desirable  because  small  cases  are  placed  in  a  sling 
or  net  when  unloaded,  and  are  likely  to  be  crushed  if  a  heavier 
case  is  allowed  to  fall  upon  them. 

The  Importance  of  the  Shape  of  Cases. — This  is  another  factor  of 
great  importance,  particularly  where  the  ultimate  destination  is 
the  interior,  and  where  transportation  on  muleback  is  inevitable. 
Not  alone  because  of  the  fact  that  the  mules  are  small  are  long 
packages  found  unwieldy,  but  likewise,  as  the  roads  frequently  lie 
through  narrow  trails  in  the  mountains,  the  danger  of  packages 
scraping  mountain  sides  on  the  trails  is  far  greater.  The  size  and 
shape  of  the  packages  must  invariably  be  determined  by  the 
handling  they  are  to  receive. 


162  EXPOETING  TO  LATIN  AMERICA 

Maximum  Sizes  and  "Weights. — In  packing  cases  which  must  l^e 
transported  on  niiileback  it  is  indispensable  to  consider  both  weight 
and  size.  The  maximum  load  that  a  mule  can  carry  is  125  kilos 
or  about  250  pounds.  Not  only  should  the  weight  be  considered, 
but  the  best  size  so  that  the  cases  may  be  properly  strapped  on 
the  mule's  back.  Common  sense  indicates  that  the  cases  should 
be  oblong  and  3  by  2  by  2  feet — preferably  smaller.  When  only 
one  package  is  placed  on  the  back  of  a  mule,  the  maximum  weight 
that  can  be  carried  is  150  pounds. 

How  the  Sealing  Is  Done. — The  use  of  sealed  cases  will  be  found 
very  helpful  in  preventing  pilfering.  When  a  shipment  is  sealed 
it  can  be  done  with  a  wire  which  is  placed  around  the  center 
of  the  case.  This  wire  is  quite  thin;  it  is  fastened  around  the 
case  with  brads,  and  both  ends  are  placed  in  lead ;  it  is  then  pressed 
by  special  instruments  made  for  this  purpose ;  it  is  thus  impossible 
to  open  the  case  unless  the  seal  is  broken. 

The  Necessity  for  Compactness. — Freight  charges  collected  by 
steamship  companies  are  based  on  cubic  measurements  or  dis- 
placement except  in  those  cases  where  the  freight  would  be  greater 
if  calculated  on  a  weight  basis.  Because  of  this  fact  the  importer 
is  naturally  anxious  that  the  goods  shall  be  packed  in  as  small 
a  bulk  as  possible.  Packing  cases  should  be  fitted  as  nearly  as 
possible  to  the  actual  contents  in  order  that  there  may  be  no 
waste  space  which  must  be  filled  by  excelsior,  shavings,  or  other 
packing  material  productive  only  of  expense.  When  it  is  prac- 
tical to  pack  shipments  "knock  down"  without  sacrificing  any  pos- 
sible selling  advantage  of  the  article  thus  shipped,  it  is  advisable 
to  do  so. 

Advantage  in  the  Use  of  Screws. — Where  shipments  are  destined 
to  interior  points  and  it  is  important  that  contents  of  a  case  shall 
be  not  damaged,  the  use  of  screws  is  advocated. 

The  Use  of  Lightweight  Crates  and  Boxes. — Where  duties  are 
based  on  the  gross  weight  of  goods,  and  the  lightest  pack- 
ing is  desirable,  a  careful  study  should  be  made,  not  only  how 
to  obtain  this  lightness  of  weight  but  also  the  maximum  strength. 
It  would  avail  but  little  to  effect  a  saving  in  weight  and  have 
the  merchandise  arrive  at  destination  in  an  unsalable  condi- 
tion. 

Lightweight  Packing  Desirable. — American  manufacturers  who 


PACKING  AND  MARKING  163 

can  supply  packing  that  is  both  strong  and  extremely  light  will 
find  the  customer  not  only  willing  to  pay  for  any  difference  over 
regular  charges  but  inclined  to  favor  them  because  of  the  advan- 
tages of  importing  in  packages  which  make  the  duty  less.  Such 
packing  is  used  to  good  advantage  by  German  and  Italian  concerns, 
being  made  of  papier  mache  or  fiber  board,  pressed  until  it  is 
almost  as  hard  as  sheet  iron  but  extremely  light,  strong,  and  damp 
proof. 

When  duty  is  charged  according  to  weight,  and  the  tariff  applies 
to  the  container  as  well  as  the  goods,  the  manufacturer  should 
endeavor  to  give  the  wrapper,  container,  and  outside  packing  a  sal- 
able value  to  help  cover  the  expense.  A  concrete  example  of  this 
method  is  that  of  European  exporters  of  chinaware  who  use  wicker 
baskets  and  whose  wrappings  consist  of  oilcloth,  both  of  which  can 
be  sold. 

Another  instance  is  that  of  German  exporters  who  pack  several 
crates  in  lightweight  cases.  These  crates  consist  of  two  light  strips 
of  wood,  three-eighths  inch  in  thickness,  two  inches  wide  all 
around,  and  then  one  covering  of  light  burlap  inside  that.  A 
dozen  such  small  crates  are  packed  in  one  large  case  and  placed 
aboard  ship.  The  manifest  covering  them  calls  for  twelve  pack- 
ages; upon  arrival  at  the  pier  the  stevedores  tear  up  the  big  case 
and  the  Latin  American  customer,  who  has  to  pay  a  specific  duty 
on  his  wares,  finds  a  great  saving  has  been  effected. 

An  English  Packing  Case. — An  example  of  a  model  case  used  by 
English  exporters  is  the  following:  It  is  made  of  boards  which 
are  1  inch  thick  for  the  sides  and  IVi  inches  thick  on  the  ends. 
The  length  is  three  feet  four  inches  by  two  feet  four  inches  for 
the  height  and  width.  It  bears  several  battens,  especially  on  the 
sides,  as  a  reinforcement.  Over  the  battens  are  iron  hoops,  thor- 
oughly nailed.  The  battens  are  3I/4.  by  31/2  inches  in  width  and 
breadth.  The  cost  of  this  case  is  from  $6  to  $7.50  and,  of  course, 
a  charge  is  made  for  it  by  the  shipper. 

The  Use  of  Packages  Which  Can  Be  Sold. — Many  other  in- 
genious methods  have  been  devised  for  the  purpose  of  reducing 
the  cost  of  duty.  Not  infrequently  the  packages  have  a  commercial 
value,  such  as  trunks,  baskets,  etc.  Naturally  these  are  also  placed 
in  very  strong  crates  in  order  that  the  shipment  may  reach  desti- 
nation in  perfect  condition. 


1()4  EXPORTING  TO  LATIN  AMERICA 

Cases  Must  Be  Carefully  Made. — The  wood  used  in  making 
packing  cases  for  export  should  be  tough  and  at  least  one  inch 
in  thickness.  Cheap  pine  wood  should  never  be  used.  The  con- 
tents of  a  case  should  be  securely  fastened  so  that  they  cannot  move 
about  in  the  case  or  rub  or  knock  together. 

By  inserting  screws  instead  of  nails  the  inspection  of  the  ship- 
ment is  facilitated,  inasmuch  as  the  necessary  number  of  boards 
may  be  removed  without  damage  for  the  purpose  of  inspect- 
ing the  contents;  the  boards  are  then  refastened  in  the  same 
manner. 

Avoiding  Secondhand  Cases. — Secondhand  packing  boxes  should 
never  be  used  because  of  their  weakness.  It  is  unreasonable  to 
expect  a  shipment  whose  destination  is  one  thousand  miles  distant 
to  arrive  in  good  order  if  packed  in  poor  containers.  Old  cases  on 
which  various  marks  appear  should  under  no  circumstance  be  used. 
It  not  only  causes  confusion  in  transit,  but  at  the  point  of  desti- 
nation there  is  likely  to  be  trouble  for  the  customs  officials  in  read- 
ing the  marks. 

The  Use  of  Pulp  Packages. — Within  recent  years  the  use  of  pulp 
containers,  that  is,  cases  made  of  pulp,  has  become  very  com- 
mon. These  should  not  be  employed  in  shipping  goods  to  Latin 
American  countries.  In  the  first  place,  the  extremely  rough 
handling  to  which  cases  are  subjected  makes  it  impracticable,  and 
in  the  second,  the  danger  of  damage  by  water  and  moisture  is  far 
too  great. 

Avoiding  Many  Small  Packages. — It  is  highly  important  to 
make  the  packages  as  large  as  possible,  consistent  with  the  needs 
of  transportation,  in  order  to  minimize  the  charges  for  handling. 
This  reduces  not  only  the  drayage  expense  in  this  country,  but 
the  numerous  charges  which  arise  in  connection  with  tlie  handling 
of  shipments  at  destination.  In  Latin  America  it  is  the  custom 
to  assess  the  charges  per  case,  and  the  greater  the  number  of 
cases,  the  more  expensive  will  be  tlieir  liandling. 

Numbering  All  Cases. — In  preparing  a  shipment  for  export  to 
Latin  Amorira  it  is  important  that  every  package  or  case  be  given 
a  number,  and  that  this  number  l)c  placed  on  the  packing  list  and 
invoice.  This  is  of  great  aid  in  determining  what  ])art  of  a  ship- 
ment has  been  lost,  in  case  it  is  reported  missing,  and  will  thus 
aid  in  its  quick  replacement.    It  occasionally  happens  that  mules 


PACKING  AND  MARKING  165 

or  llamas  engaged  in  transporting  packages  in  South  America 
roll  over  the  precipices,  and  where  the  loads  contain  cargoes  of 
machinery  the  system  of  numbering  the  packages  will  be  found 
very  useful. 

English.  Words  Should  Be  Avoided. — The  use  of  English  words 
such  as  "Care,"  "This  side  up,"  etc.,  should  be  avoided,  being  of 
no  practical  value.  It  will  be  readily  seen  that  no  attention  what- 
ever is  paid  thereto,  inasmuch  as  the  stevedores  and  freight  handlers 
have  no  knowledge  of  their  meaning.  If  it  seems  desirable  to  use 
words  of  this  character,  they  should  be  in  Spanish,  carefully  sten- 
ciled, and  perfectly  legible,  as  Co)i  Cvidado. 

The  Importance  of  Proper  Marking. — The  marking  of  shipments 
to  Latin  America  is  of  equal  importance  with  packing,  as  delays 
and  nondelivery  of  many  shipments  may  be  attributed  to  a  failure 
in  marking.  It  is  essential  that  the  mark  be  absolutely  plain  and 
legible.  The  packages  should  be  marked  with  stencil  and  with  an 
ink  which  will  not  wear  off  or  become  blurred  or  illegible  when 
wet.  The  affixing  of  tags  and  other  means  of  identification  which 
are  likely  to  be  torn  off  or  lost  in  handling  should  also  be  avoided. 
Where  a  tag  is  affixed,  it  should  be  of  the  toughest,  strongest  mate- 
rial, fastened  securely  by  wire. 

What  the  Mark  Is. — The  mark  usually  consists  merely  of  one  or 
more  initials  used  either  alone  or  in  connection  with  such  symbols 
as  squares,  circles,  diamonds,  or  triangles;  this  is  used  in  addition 
to  the  name  of  destination.  The  purpose  of  this  abbreviation  is 
easily  understood.  The  name  of  the  consignee  is  thus  hidden  from 
the  shipper's  competitors,  and  from  others  who  may  be  interested. 
It  also  reduces  a  great  amount  of  labor  which  would  otherwise 
be  required  to  enter  the  marks  on  the  bills  of  lading,  the  certifi- 
cates of  clearance,  packing  lists,  ship's  manifests,  etc.  Experience 
has  taught  the  desirability  of  using  the  fewest  number  of  marks. 
It  is,  of  course,  necessary  to  give  a  number  to  every  case,  and 
these  should  correspond  exactly  with  every  detail  of  invoices,  bills 
of  lading,  etc. 

Plain  Marking  Essential. — ]\Iany  shippers  use  for  export  the 
same  cases  that  are  employed  for  domestic  trade.  Such  cases  bear 
their  name,  street  address,  city,  and  advertisements.  When  these 
cases  are  used  for  export,  the  name  of  the  consignee  or  his  mark 
and  destination  are  written  in  the  same  size  of  lettering.     This 


166  EXPORTING  TO  LATIN  AMERICA, 

is  a  serious  mistake  and  one  that  should  be  avoided.  In  the  dark 
holds  of  steamships,  it  is  very  difficult  to  distinguish  such  mark- 
ings, and  as  a  result  the  shipments  are  frequently  carried  beyond 
their  destination.  For  his  own  advantage,  the  American  ship- 
per should  use  packages  that  are  free  of  other  words,  in  order 
that  they  may  reach  his  customers  promptly.  The  best  plan 
is  to  print  on  the  cases  the  name  or  marks  and  destination 
in  large  letters,  likewise  the  net  and  gross  weights  in  kilos.  The 
stencil  characters  should  be  at  least  two  and  one-half  inches  in 
height. 

Government  Exactions  Regarding  Marks. — Because  of  many 
unfortunate  experiences,  a  number  of  South  American  republics 
require  that  the  marks  on  packages,  cases,  barrels,  etc.,  be  stenciled. 
Such  republics  prohibit  the  importation  of  goods  on  which  there  is 
brush  marking.  This  is  an  excellent  precaution  which  should  be 
adopted  by  every  shipper  to  Latin  x4.merica,  as  it  avoids  confusion 
and  insures  the  proper  delivery  of  the  shipment.  In  a  number 
of  countries,  cases  must  be  marked  not  only  on  one  side  but  on 
two  or  even  three  sides  of  a  package.  The  net  and  gross  weights 
are  also  exacted  and  must  be  stenciled  in  the  same  manner  as  the 
address.  Care  should  be  taken  that  these  weights  agree  exactly 
with  all  shipping  documents,  as  the  most  insignificant  variation 
entails  trouble  and  difficulties. 

An  Example  of  Proper  Marking. — An  example  of  the  proper 
marking  to  be  used,  particularly  in  certain  countries  where  this 
is  a  matter  of  great  importance,  is  the  following : 


Moir\^:evldeo 

Another  example  that  may  be  quoted  is  as  follows ; 


PACKING  AND  MABKING  167 


BT.  65  Kf  .  \  /  ^^^ 


In  the  second  instance  the  weights  given  are  net  and  gross, 
Nt.  meaning  net,  Bt.  meaning  Bruto,  gross.  The  "Kg/'  is  the  ab- 
breviation of  kilogram.  The  reason  for  stating  the  weight  on  all 
freight  is  that  it  affords  a  quick  index  to  those  handling  it,  as  to 
the  sort  of  crane  or  block  and  tackle  to  use  in  loading  and  un- 
loading. 

Publications  Relative  to  Packing  and  Marking. — A  number  oi 
publications  containing  instructions  fur  packing,  shipping,  mark- 
ing, etc.,  have  been  published  by  the  United  States  Government. 
They  will  be  found  listed  on  page  493  of  the  Appendix. 


MARINE  INSURANCE 

Introduction. — The  matter  of  insurance  covering  shipments  to 
Latin  America  is  one  that  requires  the  closest  attention  of  every 
exporter.  Shipments  made  to  Latin  American  ports  should  be  fully 
insured  against  the  risk  of  loss,  damage,  and  pilferage.  Many 
shippers  are  not  aware  of  the  fact  that  the  liability  of  a  steam- 
ship company  is  practically  negligible.  Almost  any  loss  that  oc- 
curs is  sustained  by  the  shipper  of  the  merchandise  or  the  owner, 
and  it  is  only  rarely  that  the  steamship  company  itself  becomes 
liable  for  damage  or  loss  from  any  cause  whatever. 

The  Meaning  of  Marine  Insurance. — Marine  insurance  covers 
the  loss  or  damage  to  a  shipment  of  merchandise  during  a  voyage 
specified  in  the  policy,  from  perils  of  the  sea,  the  act  of  God,  and 
any  other  causes  that  may  be  specified  in  the  policy  covering  the 
shipment. 


168  EXPOETING  TO  LATIN  AMEEICA 

The  Meaning  of  "General  Average." — The  laws  relating  to 
insurance  greatly  favor  the  steamship  lines.  Because  of  this, 
marine  insurance  is  essential.  When  a  steamship  is  sunk,  burned, 
damaged  in  a  storm,  hurt  in  a  collision,  or  is  completely  lost  at 
sea,  the  owner  of  the  vessel  is  not  responsible  to  the  shipper  or 
consignee  of  the  merchandise.  The  captain  of  a  vessel  is  at 
times  compelled  to  incur  an  unusual  expense  or  to  make  a  heavy 
sacrifice  of  a  part  of  the  cargo  in  order  to  preserve  his  ship  and  the 
remainder  of  the  cargo  therein.  The  expense  of  such  a  sacrifice, 
which  includes  the  cost  of  the  means  taken  to  prevent  a  still  heavier 
loss,  is  known  as  the  "general  average."  The  theory  upon  which 
the  general  average  is  based  is  that  such  a  loss  is  sustained  for 
the  benefit  of  all,  to  meet  which  the  actual  loss  is  assessed  against 
the  owners  of  the  cargo  in  direct  ratio  to  the  value  of  their  ship- 
ments. 

The  fact  that  the  shipper  had  an  insurance  policy  issued  for 
the  shipment  transfers  this  liability  to  the  insurance  company.  A 
shipment,  when  not  insured,  may  be  legally  held  by  the  owner  of 
the  vessel  and  confiscated  by  him  to  protect  any  loss  to  the  ship 
or  cargo.  This  can  only  be  avoided  if  the  owner  of  the  shipment, 
through  his  agent  on  the  ground,  can  give  a  bond  to  guarantee 
the  payment  of  the  share  of  the  loss  assessed  against  the  shipment. 
For  this  reason  practically  every  shipment  is  insured,  as  the  prin- 
ciple involved  is  that  of  protecting  the  best  interests  of  all 
concerned. 

The  Liability  of  the  Insurance  Companies. — It  is  absolutely 
essential  that  the  exporter  examine  closely  all  marine  insurance 
policies.  This  is  due  to  the  fact  that  many  losses  for  which  claims 
will  be  made  against  the  shipper  are  not  covered  in  such  policies. 
The  ordinary  policies  do  not  take  into  account  by  the  term  "perils 
of  the  sea,"  damage  from  breakage  of  cases  or  packages,  the  chafing 
of  shipments,  pilferage,  damage  by  water  in  the  hold,  etc. 

The  actual  protection  of  a  marine  policy  is  usually  against  only 
extraordinary  occurrences,  including  the  loss  by  fire  while  on  the 
vessel,  damage  to  the  shipment  by  sea  water  or  moisture  (as  a 
result  of  collision  or  like  catastrophe),  damage  to  the  shipment 
by  moving  of  the  cargo  because  of  bad  weather  conditions,  etc. 
The  shipper  should  see  to  it  that  all  kinds  of  losses  are  carefully 
specified  in  the  policy. 


MAKINE  INSURANCE  169 

Protecting  Other  Hazards. — As  the  usual  policies  do  not  cover 
many  of  the  hazards  to  which  a  shipment  is  subjected  before 
being  placed  aboard,  it  is  essential  that  this  should  also  be  taken 
into  consideration.  A  shipment  may  be  damaged  by  fire,  water,  or 
moisture  while  it  is  on  dock  at  the  port  of  departure,  just  as  it 
may  be  so  injured  before  delivery  to  consignee  after  a  safe  ocean 
voyage.  A  shipment  may  also  be  pilfered  before  it  is  placed  on 
the  vessel,  as  it  may  likewise  be  robbed  while  on  board  and  on  the 
dock  of  the  port  of  entry.  Shipments  may  also  be  damaged  by 
extremely  rough  handling.  The  rates  will  be  quoted  by  the  insur- 
ance brokers  in  proportion  to  the  value  and  risk  involved  in  these 
hazards. 

Free  of  Particular  Average  under  Five  Per  Cent. — This  phrase 
means  that  unless  the  definite  loss  or  damage  to  a  shipment 
amounts  to  five  per  cent,  or  more  of  the  sum  for  which  the  ship- 
ment was  insured  as  specified  in  the  policy,  the  insurance  com- 
panies allow  no  claims  for  damage  or  partial  loss. 

Necessity  for  Insuring  under  Particular  Average. — Applications 
for  insurance  subject  to  a  particular  average  must  particularly  pro- 
vide therefor  in  the  applications  for  such  insurance. 

The  Meaning  of  "Open  Policy"  Insurance. — Marine  insurance 
companies  furnish  "open"  policies  under  which  shipments  may  be 
insured  at  rates  applicable  to  the  various  Latin  American  repub- 
lics.   The  method  of  using  an  open  policy  is  as  follows : 

The  insurance  company  supplies  a  book  of  blank  certificates; 
whenever  a  shipment  is  made  the  importer  fills  in  the  certificate 
which  contains  the  detail  of  the  shipment,  including  the  rate, 
number  of  cases,  value,  etc.,  together  with  the  number  of  the  pol- 
icy. When  shipments  are  made,  applications  are  sent  to  the  insur- 
ance company  giving  notice  of  the  shipment,  and  for  the  premiums 
payuients  are  made  monthly. 

The  certificates  are  generally  indorsed  in  blank  and  attached 
to  the  remainder  of  the  papers  and  forwarded  to  the  consignee, 
who  presents  them  in  tlie  event  of  loss. 

Precautions  in  Placing  Marine  Insurance. — Marine  insurance  is 
very  flexible  and  the  policies  may  be  written  to  cover  all  hazards 
to  which  a  shipment  may  be  subjected  from  the  moment  it  leaves 
the  warehouse  or  factory  of  the  exporter  until  it  is  within  the 
possession  of  the  consignee  at  its  ultimate  destination.    Under  such 


170  EXPORTING  TO  LATIN  AMERICA 

a  policy  all  the  risks  to  which  a  shipment  is  ordinarily  sub- 
jected are  guarded  against;  therefore  the  shipper  should  have  a 
clear  understanding  with  reliable  brokers  in  order  that  no  mis- 
understanding may  arise  in  the  event  of  losses,  complete  or  par- 
tial. 

Lists  of  Insurance  Brokers. — Although  arrangements  for  marine 
insurance  can  be  made  through  insurance  agents  in  the  interior, 
the  largest  and  most  experienced  firms  are  naturally  established 
in  New  York.  A  list  of  such  brokers  may  be  found  in  the  Appen- 
dix. Freight  forwarding  agencies  also  provide  insurance  but  must 
place  it  through  brokers;  hence  when  the  business  is  of  some  vol- 
ume it  is  preferable  to  deal  direct  with  brokers. 

The  Cost  of  Marine  Insurance. — Before  buying  a  marine  insur- 
ance policy  the  exporter  should  make  every  effort  to  obtain  the 
lowest  possible  rates  besides  the  most  advantageous  form  of  con- 
tract, since  the  policies  vary  materially  and  the  rates  are  natu- 
rally in  proportion  to  the  character  of  the  hazards  covered.  Gen- 
erally speaking,  the  cost  of  marine  insurance  varies  from  one- 
quarter  of  one  per  cent,  upward,  but  it  is  naturally  higher  if 
the  policy  includes  risk  of  theft,  leakage,  breakage,  damage  while 
on  dock,  etc. 

Provisions  Made  for  Freight  and  Charges. — In  making  arrange- 
ments for  marine  insurance  it  is  customary  to  add  to  the  value  of 
each  individual  shipment  from  10  to  15  per  cent,  of  its  value. 
This  is  to  protect  the  party  insured  against  tlie  loss  of  freight 
and  handling  charges  which  would  have  been  incurred  by  the  time 
the  shipment  reached  its  destination.  When  quotations  are  made 
F.O.B.  and  the  amount  of  the  duty  is  included,  this  should  be 
authorized  by  the  shipper,  else  payment  may  be  refused  by  the 
importers. 

Insurance  for  Pilferage. — One  of  the  hazards  in  shipping  goods 
which  are  easily  carried  away  is  that  of  pilferage.  This  covers 
consignments  of  many  articles  such  as  neckwear,  fancy  goods,  shoes, 
hardware,  tools,  implements,  etc.  Although  it  is  possible  to  obtain 
insurance  against  loss,  it  is  absolutely  necessary  to  pack  the  cases 
with  the  utmost  security  and  seal  them  against  entry.  Insurance 
at  a  reasonable  rate  against  thievery  can  be  obtained,  but  if  many 
claims  are  presented  the  rate  is  likely  to  be  raised  or  the  insur- 
ance entirely  withdrawn.     Even  though  claims  are  paid^,  the  con- 


MARINE  INSURANCE  171 

signees  in  Latin  America  should  be  spared  the  trouble  of  making 
them. 

How  to  Collect  a  Claim. — When  a  loss  occurs,  the  holder  of  the 
certificate  may  file  a  claim  for  the  value  of  the  shipment  includ- 
ing the  expenses  of  freight  forwarding,  the  insurance  premium,  and 
other  charges.  As  the  insurance  certificate  is  one  of  the  documents 
indispensable  to  financing  shipments,  it  is  either  in  the  possession 
of  the  bank  through  whose  hands  the  documents  are  handled,  or 
in  that  of  the  consignee  who  has  accepted  the  draft  or  paid  it.  The 
papers  that  are  necessary  in  addition  to  the  statement  of  loss  are 
as  follows : 

1.  The  original  and  negotiable  copies  of  bill  of  lading. 
These  must  be  indorsed  or  made  "to  order"  that  they  may  be  used 
by  the  underwriters. 

2.  The  policy  or  certificate  of  insurance.  This  must  likewise 
be  indorsed  if  made  "to  order." 

3.  A  document  conveying  the  interest  of  the  owner  to  the  under- 
writer. 

Claims  should  be  presented  through  the  agent  of  the  insurance 
company  in  the  port  of  entry  or  forwarded  direct  to  the  company. 

4.  A  certificate  of  survey  signed  by  a  Lloyd's  agent,  one  of  whom 
is  found  in  every  port,  will  be  of  material  assistance. 

Books  Relating  to  Marine  Insurance. — A  number  of  important 
works  which  deal  very  fully  with  marine  insurance  may  be  con- 
sulted by  the  student.  These  are  listed  on  page  465  of  the  Ap- 
pendix. 


CHAPTER  XI 

INVOICES,  CONSULAR  INVOICES,  SHIPPING  DOCUMENTS, 
FREIGHT  FORWARDING,  OCEAN  FREIGHT  RATES,  INSUR- 
ANCE, BANKING  DOCUMENTS 


INVOICES 

The  Importance  of  Invoices. — One  of  the  means  of  satisfying 
Latin  American  buyers  is  the  making  of  proper  invoices.  The 
greatest  care  shoiikl  be  given  them  as  they  are  vital  documents. 
Every  effort  should  be  made  to  supply  all  possible  information  to 
insure  the  proper  clearance  of  merchandise  through  the  custom 
house  and  the  payment  of  the  lowest  rates  of  duty. 

Essential  Features  of  Latin  American  Invoices. — The  American 
manufacturer  should  insist  that  invoices  receive  the  personal  atten- 
tion of  the  employee  charged  with  the  care  of  export  business. 
Invoices  should  be  carefully  checked  and  should  be  made  as 
follows : 

1.  They  should  be  written  on  a  good  quality  of  paper,  prefer- 
ably with  a  typewriter. 

2.  All  invoices  must  bear  tlie  name  of  the  shipper,  the  con- 
signee, the  destination,  the  number  of  cases,  and,  without  fail,  the 
exact  shipping  mark.  Invoices  should  clearly  designate  whether 
the  packages  are  crates,  baskets,  barrels,  boxes,  bales,  casks, 
etc. 

3.  The  gross,  legal,  and  net  weights  should  be  stated.  These 
should  be  expressed  in  kilograms  (2.20  kilos  equal  1  pound). 

4.  The  dimensions  of  each  package  must  be  specified.  These 
should  also  be  calculated  in  the  metric  system. 

5.  Goods  should  be  billed  in  the  order  they  are  packed;  that 
is,  Case  1,  2,  3,  etc. 

6.  The  dollar  sign  should  precede  each  price  extension  and 
footing. 

7.  The  words  "Gold  Dollar"  should  always  be  used.     It  should 

172 


IJSrVOICES  173 

be  stated  on  the  invoices  whether  the  charges  for  collection  of  drafts 
are  for  the  shipper  or  the  consignee. 

8.  If  prices  are  subject  to  a  combination  of  discounts,  they 
should  be  worked  out  for  each  item  so  that  the  net  value  may  be 
shown.  This  is  particularly  necessary  where  an  ad  valorem  duty 
is  assessed. 

9.  The  use  of  general  designations  should  be  avoided.  A  con- 
crete example  would  be  "hardware,"  when  hammers  or  awls  are 
shipped. 

10.  Wherever  it  is  possible,  and  can  definitely  be  determined, 
especially  where  orders  bear  these  instructions,  each  item  should 
state  the  classification  of  the  tariff  of  the  country  to  which  the 
goods  are  consigned. 

11.  For  each  item  should  be  specified  the  exact  material  used 
in  making  it,  thus :  hats  of  felt  with  ribbons  of  silk ;  sofas  of 
birch  with  leather  cushions,  stuffed  with  moss;  machinery  of  steel, 
with  parts  of  brass.  Every  detail  which  can  be  furnished  to  aid 
the  customs  officials  in  classifying  the  article  for  assessment  of 
duty  will  be  found  very  valuable.  All  items  packed  in  the  ship- 
ment should  be  billed. 

12.  If  cloth  is  exported,  the  exact  material  of  which  it  is  made 
must  be  specified.  For  example,  silk,  cotton  piece  goods,  percale, 
voile,  etc. 

13.  In  exporting  cotton  goods  or  cloth,  it  is  best  to  give  the 
width,  the  total  number  of  threads  per  six  square  millimeters,  and 
the  kilograms  per  100  square  meters.  This  should  be  determined 
exactly  as  variations  may  make  an  important  difference  in  the  duty. 
Much  work  and  unnecessary  handling  at  the  custom  house  may 
thus  be  guarded  against. 

14.  When  quantities  of  booklets,  circulars,  or  advertising  novel- 
ties are  included  in  a  case,  they  should  be  listed,  together  with 
weight  and  description,  and  a  certain  value  specified.  This  value 
should  be  placed  on  the  bill  and  accompanied  by  a  corresponding 
credit  memorandum.  The  use  of  the  words  "no  value"  or  "no 
charge"  should  be  avoided.  Failure  to  do  this  frequently  involves 
the  consignee  in  difficulties  with  the  custom  house,  and  may  even 
result  in  the  seizure  of  the  goods. 

15.  When  items  such  as  prepaid  freight,  special  cases,  or  cost 
of  consular  invoices  are  charged,  special  invoices  should  be  ren-« 


174  EXPORTING  TO  LATIN  AMERICA 

dered.     Such  items  should  never  be  included  in  bills  for  the  goods. 

16.  If  machinery  is  shipped  K.D.  and  divided  among  various 
cases,  it  should  be  so  listed  on  the  invoices,  particularly  where  an 
ad  valorem  duty  is  assessed,  else  the  cost  to  the  consignee  will  be 
increased. 

17.  No  abbreviations  should  be  used. 

How  Many  Invoices  Must  Be  Made. — The  exporter  should  be 
governed  by  conditions  as  to  the  number  of  invoices  made.  In 
many  instances  the  Latin  American  importer  insists  upon  copies 
for  his  own  use  and  they  should  be  willingly  supplied.  It  is  best 
to  make  for  the  use  of  the  Latin  American  importer  an  original, 
duplicate,  and  triplicate.  The  original  should  be  forwarded  direct 
to  the  importer. 

Correspondence  Relating  to  a  Shipment. — When  a  shipment  is 
made  against  a  draft,  it  is  customary  to  issue  the  draft  in  dupli- 
cate. In  such  cases  the  duplicate  invoice  accompanies  the  one  draft 
and  the  triplicate  the  other  draft.  For  the  purpose  of  obtaining 
a  consular  invoice,  another  set  of  invoices  should  be  made,  identi- 
cal with  the  ones  sent  to  the  merchant,  the  original  of  which 
will  be  taken  by  the  Consul  of  the  Latin  American  country,  to- 
gether with  as  many  copies  as  may  be  exacted  by  the  laws  of  the 
country ;  in  some  cases  three  or  four  copies  are  needed. 

The  Numbering  of  Invoices. — Exporters  to  Latin  America  will 
find  it  desirable,  not  only  for  their  own  convenience  but  particu- 
larly as  an  aid  to  their  clients,  to  number  their  invoices.  This 
is  particularly  valuable  where  shipments  are  frequent,  and  will  be 
found  useful  in  obtaining  duplicate  orders. 

How  Foreign  Invoices  Differ. — American  manufacturers  who 
have  successfully  established  a  demand  for  their  products  in  the 
Latin  American  republics  have  found  invoices  an  excellent  means 
of  developing  trade.  Conditions  in  the  Latin  American  republics 
are  in  many  ways  different  from  those  in  the  United  States,  and 
in  the  matter  of  commercial  documents  particularly  there  is  a 
noticeable  variation.  Latin  Americans  frequently  are  unable  to 
understand  the  almost  utter  lack  of  details  when  they  ar(\  them- 
selves accustomed  to  furnish  so  many  on  invoices.  As  invoices 
are  considered  vital  documents,  every  effort  should  bo  made  to 
have  them  carry  the  information  required  for  proper  clearance  of 
the  merchandise.    This  is  a  prime  essential  because  of  th^  fact  that 


INVOICES  175 

many  customs  officials  are  inclined  to  take  advantage  of  the  slight- 
est discrepancies  in  descriptions,  weights,  and  declarations,  to  assess 
fines,  by  which  they  are  often  individually  benefited. 

Invoices  a  Means  to  Business. — Accuracy  and  care  in  preparing 
invoices  will  result  not  alone  in  facilitating  the  clearance  of  a 
shipment  but  as  a  positive  means  of  developing  trade.  The  Latin 
American  exporter  prefers  to  do  business  with  a  concern  that  is 
careful,  attentive  to  details,  and  watchful  of  his  interests.  If 
invoices  are  prepared  with  care  and  made  easily  understandable, 
with  an  accurate  description  of  the  goods  in  Spanish,  it  will  be 
found  that  the  time  required  is  well  spent  and  productive  of 
definite  results. 

The  Proper  Description  of  Goods. — In  developing  business  with 
Latin  America,  the  manufacturer  making  his  first  shipment  to  a 
country  should  exercise  unusual  care  in  applying  a  proper  de- 
scription. When  the  invoice  is  sent  the  customer  should  be  asked 
to  say  whether  some  other  word  than  that  used  in  the  bill  shall 
be  written  on  future  invoices  as  a  means  of  expediting  the  clear- 
ance. In  this  manner  the  manufacturer,  in  the  course  of  time, 
can  accumulate  a  great  deal  of  valuable  information,  and  make 
more  remote  the  possibility  of  his  customer's  being  penalized  or 
fined  by  the  customs  officials. 

The  Importance  of  Correct  Papers. — Before  a  shipment  to  a  for- 
eign country  is  dispatched,  the  manufacturer  should  be  certain  that 
the  invoices  are  correctly  made  according  to  the  tariff  schedule. 
If  there  is  any  doubt,  application  should  be  made  to  the  Consul 
General  of  the  republic,  in  New  York,  although  it  is  best  to 
ascertain  from  the  customer  the  latter's  desires  and  follow  them 
to  the  letter. 

Signatures  on  Invoices. — "When  exporting  to  some  of  the  Latin 
American  republics,  it  is  necessary  to  make  a  declaration  regarding 
the  origin  or  manufacture  of  the  goods.  These  regulations  must 
be  signed  by  an  official  of  the  exporting  concern  and,  in  the  case  of 
a  partnership  or  unincorporated  company,  by  a  member  thereof. 
It  is  desirable  in  every  instance  that  an  export  invoice  shall  bear 
the  signature  of  a  firm  member,  as  it  serves  to  create  confidence 
and  raise  the  firm  in  the  opinion  of  the  Latin  American  importer. 
It  is  also  a  custom  to  write  on  export  invoices  the  letters  "E.&O.E.," 
meaning  "Errors  and  omissions  excepted." 


176  EXPORTING  TO  LATIN  AMERICA 

The  Use  of  a  Packing  List. — As  is  frequently  the  case  in  domes- 
tic trade,  a  separate  packing  list  is  found  of  great  advantage,  and 
the  custom  of  supplying  such  a  list  in  addition  to  the  other  docu- 
ments covering  a  shipment  for  export  to  Latin  America  is  often 
followed.  This  packing  list  should  contain  an  absolutely  accurate 
memorandum  of  the  contents  of  every  case,  and  should  show,  with- 
out possibility  of  any  misunderstanding,  the  exact  number  of  cases 
in  a  shipment,  as  well  as  the  contents  of  each  case.  If  there  is 
any  discrepancy  in  the  packing  list,  the  consular  invoice,  or  the 
commercial  invoice,  delays  are  likely  to  occur  at  the  port  of  entry 
in  Latin  America.  In  the  packing  list  should  also  be  specified  the 
various  kinds  of  articles  that  are  packed  together  in  one  case, 
with  the  gross,  legal,  and  net  weight  thereof. 

Attention  to  Details  Indispensable. — Lack  of  attention  to  in- 
structions, or  a  superficial  observance  of  them,  leads  to  many  mis- 
understandings. A  concrete  example  of  this  is  found  in  the  case 
of  the  manufacturer  who  placed  the  packing  list  of  a  shipment  in 
one  of  the  cases  instead  of  forwarding  it  with  the  shipping  papers. 

The  Use  of  Code  Words. — The  use  of  code  words  in  the  descrip- 
tion of  articles  will  be  found  a  material  aid  to  foreign  customers, 
as  such  words  enable  the  client  to  duplicate  easily  by  cable  if  the 
items  are  required  quickly.  When  code  words  are  used  as  applied 
to  different  articles,  it  will  be  found  equally  advantageous  to  sup- 
ply words  for  quantities  and  other  details  to  make  reordering  easier 
for  the  dealer.  The  need  for  this  feature  is  readily  apparent  when 
the  great  volume  of  domestic  business  now  done  by  telegraph  is 
considered.  The  code  words  thus  used  are  supplementary  to  the 
elaborate  codes  obtainable  in  book  form. 

Registration  of  Cable  Address. — The  manufacturer  should 
choose  a  word  which  will  serve  as  his  code  address  and  register  it  at 
the  offices  of  the  Western  Union  and  Postal  Telegraph  companies. 
This  should  be  done  in  the  city  where  his  factory  is  located  and 
also  in  the  cities  where  he  has  established  export  offices.  The  regis- 
tration of  a  cable  address  costs  nothing  and  the  exporter  should 
use  the  word  on  all  his  printed  matter,  particularly  on  invoices 
and  letterheads.  This  precaution  will  enable  his  correspondent 
to  cable  in  the  most  ecoiiomical  way. 

The  Use  of  Cable  Codes. — In  addition  to  specifying  on  his  state- 
ment the  cable  address,  it  is  also  advisable  to  print  the  cable  codes 


INVOICES  117 

that  are  used.  Of  these  there  are  many,  but  those  most  frequently 
employed  are  the  Western  Union,  the  A. B.C.,  the  A  1,  the  Samper, 
the  Lieber,  and  the  Veslot.  These  may  be  very  easily  obtained  as 
indicated  on  page  466  of  the  Appendix. 

The  Use  of  Consular  Invoices. — The  consular  invoice  is  one  of 
the  most  important  documents  in  the  forwarding  of  shipments 
from  the  United  States  to  the  Latin  American  republics  as  it  is 
required  by  almost  all  the  southern  countries.  Consular  invoices 
serve  officially  to  determine  the  value  of  the  merchandise  imported 
into  the  republics.  The  document  is  virtually  a  copy  of  the  com- 
mercial invoice,  being  an  itemized  memorandum  of  the  products 
included  in  a  shipment,  their  exact  value,  and  such  other  details 
as  the  name  of  the  steamer  by  which  the  goods  are  carried,  the  firm 
or  individual  to  whom  consigned,  and  often  the  number  and  clause 
of  the  tariff  under  which  the  products  are  to  be  imported.  These 
documents  are  generally  made  upon  forms  obtained  in  the  offices  of 
the  Consulates  General  of  the  various  republics  and  a  specific 
charge  is  made  for  them.  Not  infrequently  the  necessary  blanks 
may  be  obtained  from  printers  or  stationers,  and  as  a  rule  from 
three  to  six  copies  are  required.  On  page  520  are  given  full  details 
regarding  consular  invoices  and  their  requirements. 

The  Details  of  Consular  Invoices. — The  importance  of  the  con- 
sular invoice  is  so  great  that  in  the  case  of  large  export  firms  the 
invoices  are  prepared  under  the  direction  of  one  employee  thor- 
oughly acquainted  with  the  conditions  in  the  various  countries, 
in  order  that  every  possibility  of  error  may  be  avoided.  The  con- 
sular invoices,  when  prepared,  are  taken  to  the  office  of  the  Consul, 
together  with  the  bill  of  lading  covering  the  shipment,  and  in  some 
instances  a  signed  copy  of  the  latter  document  must  be  left  with 
that  official.  The  conditions  vary  greatly  with  the  different  coun- 
tries and  a  recognized  shipping  guide  should  be  consulted  in  order 
that  all  possibility  of  error  may  be  avoided.  It  is  because  of  the 
importance  of  the  preparation  of  such  a  document  that  the  services 
of  export  agencies  and  forwarding  agencies  are  found  so  desir- 
able, particularly  as  consular  invoices  must  be  written  in  the  lan- 
guage of  the  country  to  which  the  shipment  is  made. 

Export  Bills  of  Lading. — The  railroad  companies,  as  a  general 
rule,  do  not  issue  export  bills  of  lading.  There  are  certain  com- 
panies which  operate  from  Gulf  ports  as  well  as  by  way  of  the 


178  EXPORTING  TO  LATIN  AMErJCA 

Atlantic  Coast  and  are  in  a  position  to  issue  through  bills  of  lading 
to  all  points  in  the  West  Indies,  Central  America,  Panama,  and, 
in  some  instances,  to  certain  places  on  the  northern  coast  of  South 
America  in  the  republics  of  Colombia  and  Venezuela.  Although 
certain  railroad  companies  issue  export  bills  of  lading  at  interior 
points  for  shipments  to  ports  in  South  America,  this  is  not  the 
general  custom,  as  almost  invariably  freight  is  dispatched  by  for- 
warding agents  in  New  York  City  or  other  points  through  which 
it  moves.  When  railroad  companies  forward  the  goods,  they  them- 
selves must  contract  with  steamship  agentii  ■^or  the  reservation, 
although  it  sometimes  happens  that  the  shipper,  who  has  made  his 
own  contract  with  the  steamship  company,  transfers  his  contract 
to  the  railroad  company. 

Chief  Obstacles  to  Interior  Bills  of  Lading. — Among  the  objec- 
tions to  bills  of  lading  issued  in  the  interior  are  the  custom  house 
requirements  of  the  Latin  American  governments  in  the  matter  of 
documents.  An  indispensable  detail  is  the  name  of  the  steamship 
line,  the  master  of  the  steamer,  the  name  of  the  vessel  that  carries 
the  shipment,  the  date  of  sailing,  etc.  Most  of  the  Latin  American 
republics  insist  that  at  the  time  the  consular  invoices  are  issued, 
the  bills  of  lading  likewise  be  certified  by  the  Consul  or  signed 
together  with  the  ship's  manifest  before  the  steamer  sails  from  port. 
Another  requirement  is  the  payment  of  a  Consul's  fee  for  each 
individual  bill  of  lading.  This  is  paid  to  the  Consul  in  the  port 
of  sailing,  together  with  a  fee  for  certifying  to  the  correctness  of 
the  invoice. 

Documents  of  Forwarding  Agents. — In  handling  the  shipments 
of  American  manufacturers  for  export,  the  forwarding  agents  fre- 
quently issue  private  receipts  in  the  shape  of  their  own  bills  of 
lading  to  Latin  American  ports.  As  forwarding  agents  are  not 
recognized  common  carriers,  the  bills  of  lading  issued  by  them 
do  not  protect  the  ownership  of  the  property  nor  carry  the  title, 
since  the  ocean  bill  of  lading  alone  governs  such  ownership.  As 
many  of  the  forwarding  agents,  however,  are  concerns  of  the  high- 
est responsibility,  such  documents  are  accepted  without  question 
by  banks,  particularly  those  familiar  with  the  details  of  foreign 
trade.  It  may  be  stated  as  a  general  fact  that  the  ocean 
bill  of  lading  is  usually  delivered  by  the  forwarding  agent  to  the 
bank. 


FREIGHT  FOEWAEDIICG  179 


FREIGHT  FORWARDING 

How  Export  Shipments  Are  Handled. — Shipments  for  export  are 

of  various  kinds,  but  may  be  grouped  as  follows: 

1.  Those  from  manufacturers  located  in  interior  cities,  who 
make  shipments  according  to  orders  received  from  export  houses 
and  consign  the  goods  to  iSTew  York  or  other  seaboard  towns  ac- 
cording to  specific  instructions.  These  shipments  are  handled  in 
almost  the  same  way  as  are  domestic  consignments. 

2.  Shipments  of  manufacturers  who  ship  direct  to  merchants 
in  Latin  America  from  whom  orders  have  been  received.  It  is 
the  handling  of  these  shipments  that  requires  the  greatest  attention 
and  care. 

Those  Who  Can  Forward  Goods  in  New  York. — Most  of  the 
goods  destined  for  Latin  America  are  carried  by  steamship  lines 
from  ports  in  this  country.  Only  a  part  of  those  to  Mexico  move 
by  rail  via  the  border.  The  great  bulk  of  shipments  are  carried 
by  way  of  New  York.  The  forwarding  of  such  shipments  from 
New  York  City  can  be  done  by  any  one  of  the  following  means : 

1.  Export  agents  or  New  York  offices  of  the  manufacturer. 

2.  Forwarding  agents;  i.e.,  concerns  who  make  it  a  business  to 
forward  shipments. 

3.  Eailroad  agents ;  i.e.,  the  foreign  departments  of  the  railroad 
companies. 

4.  Drayage,  transfer  or  trucking  companies. 

5.  Express  companies. 

6.  Steamship  companies. 

No  matter  which  4jf  these  agencies  is  selected  for  the  forwarding 
of  the  goods,  the  procedure  in  all  instances  is  practically  identical. 

Foreign  Freight  Agents. — With  the  development  of  the  export 
business,  the  railroad  companies  have  been  forced  by  competition 
to  lend  every  aid  to  the  exporter,  and  for  the  purpose  of  controlling 
traffic  have  seen  fit  to  establish  their  own  export  offices  where  they 
attend  to  the  various  details  in  connection  with  forwarding  ship- 
ments. Tbe  official  in  charge  is  generally  known  as  the  "foreign 
freight  agent." 

Drayage,  Transfer  or  Trucking  Companies. — Another  result  of 
the  competitive  conditions  luis  been  the  establishment  by  trucking 


180  EXPORTING  TO  LATIN  AMEEICA 

companies  of  their  own  export  agencies  for  the  purpose  of  obtain- 
ing the  hauling  of  export  shipments.  From  this  condition  has 
grown  the  establishment  of  their  foreign  departments  with  expert 
service  in  the  hauling  of  shipments  forwarded  by  them. 

Express  Companies. — A  recognized  service  of  the  leading  express 
companies  today  is  the  handling  of  foreign  shipments,  and  this  is 
done  by  departments  organized  similarly  to  the  forwarding  agen- 
cies. Their  charges  are  practically  the  same  as  those  of  other 
agencies  for  handling  this  class  of  business. 

Steamship  Companies. — While  most  steamship  lines,  particularly 
those  plying  from  southern  ports,  are  prepared  to  attend  to  the 
forwarding  of  shipments,  they  do  not  issue  bills  of  lading  until 
many  details  have  been  complied  with.  It  is,  therefore,  advisable 
to  make  shipments  in  care  of  the  other  agencies  indicated. 

Forwarding  Agents  and  Their  Work. — The  freight  forwarding 
agent  is  of  great  assistance  to  manufacturers,  particularly  where 
a  large  business  is  transacted.  It  is  an  easy  matter  to  obtain  a 
reliable  agency,  as  there  are  many  in  New  York  and  the  larger 
firms  maintain  offices  in  the  principal  inland  cities.  The  names 
of  forwarding  agencies  may  be  obtained  in  city  directories,  from 
commercial  organizations,  from  railroad  agents,  from  export  jour- 
nals in  which  they  frequently  advertise,  and  from  foreign  shipping 
guides. 

Reliable  Forwarding  Agencies  Obviate  Errors. — A  freight  for- 
warding agency  that  can  insure  satisfactory  service  is  able  to 
obviate  many  errors,  particularly  when  shipments  must  be  trans- 
ferred from  railroad  to  steamship  lines.  Where  possibilities  of 
mistakes  are  so  great  because  of  this  fact,  the  manufacturer  should 
have  a  thoroughly  reliable  agency,  even  if  its  charges  for  handling 
are  slightly  higher.  A  good  agency  will  make  it  possible  to  avoid 
fines  and  disagreements  with  Latin  American  importers. 

Forwarding  Combination  Shipments. — By  reason  of  the  business 
transacted,  many  freight  forwarders  arc  enabled  to  combine  numer- 
ous small  shipments  in  carload  lots,  "consolidated  cars,"  and  ship 
them  from  the  interior  to  ports  in  this  country,  from  which  they 
are  forwarded  to  their  ultimate  destinations.  In  some  instances, 
sufficient  small  shipments  are  available  to  consign  beyond  the 
ports  of  this  country,  in  which  case  more  favorable  rates  can  be 
obtained  for  the  ocean  haul.     Even  those  shipments  can  be  sent 


FREIGHT  FORWARDING  181 

from  the  ports  of  this  country  under  a  combination  bill  of  lading. 
The  item  of  freight  from  an  inland  city  to  the  port  is  frequently 
of  considerable  importance,  and  it  is  therefore  highly  advantageous 
to  obtain  the  rates  of  forwarders. 

Forwarding^  Agents  Possess  Advantages. — The  freight  forwarding 
agency,  by  reason  of  the  volume  of  business  it  transacts,  is  en- 
abled to  make  contracts  with  railroad  companies,  both  at  home 
and  abroad,  for  the  use  of  entire  cars  which  it  obtains  at  such 
rates  that  it  can  contract  for  hauling  freight  at  lower  rates  than 
if  the  freight  were  shipped  on  individual  bills  of  lading.  With 
steamship  companies  it  has  a  particular  advantage,  as  space,  which 
must  always  be  contracted  for,  is  rented  in  smaller  lots  to  indi- 
vidual shippers,  generally  at  a  considerably  lower  rate  than  the 
latter  could  obtain  direct.  By  combining  an  inland  freight  serv- 
ice with  foreign  freight  forwarding,  lower  through  freight  rates  can 
easily  be  quoted. 

Principal  Services  of  Forwarding  Agents. — In  addition  to  fur- 
nishing more  reasonable  rates,  a  good  forwarding  agent  attends 
to  all  necessary  shipping  documents,  including  the  shipping  per- 
mit, consular  invoice,  and  clearance  certificate;  provides  transla- 
tions of  invoices  and  sees  to  it  that  every  technical  requirement  is 
satisfied,  thus  avoiding  for  the  manufacturer  and  his  customer  fines 
and  difficulties. 

Other  Services  of  Forwarding  Agents. — Other  services  of  for- 
warding agencies  include  the  following :  efEectiug  marine  and  other 
insurance,  forwarding  for  collection  drafts  against  documents, 
discounting  documentary  drafts,  attending  to  importation  of  mer- 
chandise, and  obtaining  drawbacks.  Caution  should  be  observed 
in  arranging  with  forwarding  agents  for  the  discounting  of  drafts, 
because  of  the  possibility  of  loss  by  reason  of  carelessness  on  the 
part  of  the  agency's  correspondent,  or  the  failure  of  the  forwarding 
agent,  which  may  cause  complications. 

Foreigfn  Freight  Agents'  Quotations. — As  it  often  happens  that 
a  favorable  rate  which  includes  duty  and  other  charges  results 
in  the  capture  of  business  from  a  foreign  competitor,  the  service 
of  responsible  and  skillful  freight  forwarders  will  prove  extremely 
valuable.  Such  forwarders  undertake  not  only  to  quote  the  lowest 
rate  but  likewise  to  arrange  for  the  importation  into  a  foreign 
country,  the  payment  of  duty,  etc.    Their  experience  in  such  mat- 


J  82  EXPORTING  TO  LATIN  AMERICA 

ters  justifies  their  making  contracts  of  this  nature,  the  risk  of 
which  the  ordinary  manufacturer,  because  of  his  inexperience, 
would  not  care  to  assume. 

Advantages  in  Combining  Small  Shipments. — The  forwarding  of 
a  small  shipment  by  an  export  agency  obviates  the  necessity  of 
carriage  on  a  parcel  receipt  which  is  very  commonly  used  in  the 
case  of  small  packages.  However,  the  disadvantage  of  parcel  re- 
ceipts is  that  steamship  companies,  as  a  general  rule,  exclude  from 
this  classification  cases  which  measure  two  or  three  cubic  feet  and 
which  can  have  the  benefit  of  forwarding  at  the  tonnage  rate  under 
one  bill  of  lading  if  handled  by  a  forwarding  agent.  There  is  no 
standard  of  measurement  and  the  regulations  regarding  size  are 
different  in  the  case  of  each  steamship  line. 

Charges  of  Export  and  Forwarding  Agents. — The  charges  made 
by  export  and  forwarding  agents  vary,  but  when  business  is  done 
with  legitimate  agencies  or  old  established  firms,  the  likelihood  of 
overcharge  is  minimized.  However,  great  care  must  be  exercised 
as  there  are  numerous  unscrupulous  agents  who  take  advantage  of 
the  unwary  and  whose  charges  are  often  subject  to  much  criticism. 
Although  a  nominal  charge  for  the  issuance  of  a  bill  of  lading  and 
the  handling  of  an  average  shipment  is  $1.00,  this  does  not  repre- 
sent the  profits  of  the  forwarder  whose  further  profits  consist  in 
charging  more  for  drayage,  transfer,  etc.,  than  is  actually  paid 
by  him.  It  is  safe  to  assume  that  very  often  the  items  for  which 
bills  are  rendered  by  forwarding  agents  show  more  than  actual 
expenditures.  The  abuses  to  which  large  shippers  have  been  sub- 
jected have  led  them  to  establish  their  own  offices  in  New  York 
City  or  to  make  arrangements  with  an  export  agent,  a  portion  of 
whose  duties  (as  outlined  in  Chapter  YI)  corresponds  to  the  work 
of  a  forwarding  agency  in  the  dispatch  of  shipments. 

The  Importance  of  Selecting  Forwarding  Agents. — A  source  of 
much  comj)]aint  in  tlic  past  lias  been  the  clinrgos  for  forwarding 
shipments  made  by  unscrupulous  individuals  who  engaged  in  the 
business  for  the  deliberate  purpose  of  fraud.  This  is  practiced  by 
placing  upon  expense  bills  many  needless  or  fictitious  and  excessive 
items  which  represent  no  actual  or  necessary  outlay,  as  a  result  of 
which  manufacturers  receive  claims  from  the  importers  which 
they  must  either  allow  or  lose  all  opportunities  for  further  business. 
The  practices  of  fraudulent  forwarders  frequently  take  the  shape 


FREIGHT  FORWARDING  183 

of  heavy  charges  for  cartage  on  very  small  lots  which  often  weigh 
5  to  20  pounds  each,  a^  much  as  $1.00  being  charged  for  drayage. 
Although  the  American  manufacturer  includes  charges  of  the  for- 
warding agencies  in  his  invoices,  it  is  to  his  advantage  to  insure 
the  correctness  of  such  items,  and  to  minimize  expenses. 

Obtaining  Quotations  from  Forwarding  Agents. — The  manufac- 
turer can  easily  convince  himself  that  proper  charges  are  being 
made  by  obtaining  quotations  for  services  rendered  by  different 
freight  forwarders  and  by  the  comparison  of  bills  rendered  by 
them.  He  should  endeavor  thoroughly  to  familiarize  himself  with 
conditions  in  order  that  no  opportunity  for  overcharge  may  occur. 

Instructions  to  Give  Forwarding  Agents. — No  matter  to  whom 
instructions  are  given  for  forwarding  a  shipment,  there  are  certain 
essential  details  which  must  be  supplied.  As  a  rule  forwarding 
agents  supply  printed  forms  which  can  be  filled  in  with  the  neces- 
sary directions.  The  form  greatly  simplifies  the  procedure.  In  any 
event  the  railroad  bill  of  lading  must  be  sent  very  promptly  in 
order  that  the  shipment  may  be  handled  expeditiously  in  port  and 
storage  charges  avoided.  With  the  bill  of  lading  should  be  for- 
warded an  invoice  and  manifest  showing  exactly  the  marks  and 
numbers  of  the  packages,  and  their  weights  (gross,  legal,  and  net)  in 
pounds  and  kilograms.  It  should  also  be  definitely  stated  whether 
the  shipment  is  to  be  consigned  direct  or  to  the  order  of  the  shipper. 
Full  instructions  as  to  whether  or  not  freight  is  to  be  prepaid 
should  be  supplied;  likewise,  whether  insurance  (marine  and  pil- 
ferage) has  already  been  effected  or  whether  this  is  to  be  pro- 
vided by  the  forwarding  agent.  The  letter  should  also  state  to 
whom  the  bills  of  lading  and  consular  invoices  are  to  be  sent ;  that 
is,  whether  they  are  to  go  to  the  consignee,  to  a  bank  for  collection, 
or  to  be  returned  to  the  shipper.  In  the  event  that  a  draft  for 
the  value  of  the  goods  accompanies  the  shipment,  the  agent  should 
be  directed  as  to  how  to  handle  it;  he  should  be  told  n^hether  by 
broker,  bank,  or  otlierwise. 

The  Basis  of  Ocean  Freight  Rates. — Ocean  freight  rates  are  a 
serious  factor  in  the  development  of  trade  with  Latin  America, 
particularly  when  applied  to  commodities  on  which  the  freight 
charges  are  heavy,  for  upon  the  variation  of  such  charges  the 
placing  of  an  order  may  depend.  As  a  general  rule,  freight  rates 
for  ocean  shipments  are  quoted  according  to  measurements,  al- 


1.84  EXPORTING  TO  LATIN  AMEEICA 

though  steamship  companies  reserve  the  privilege  of  determining 
rates  which  are  usually  quoted,  "Weight  or  measurement,  ship's 
option."  The  ocean  ton  is  2240  pounds,  and  this  is  considered  the 
equal  of  -iO  cubic  feet.  Coastwise  traffic  is  based  on  the  short  ton 
(2000  pounds).  The  metric  ton  (2205  pounds)  is  now  commonly 
used  by  European  companies.  Sometimes  it  is  to  the  advantage  of 
steamship  lines  to  charge  by  weight,  and  this  is  especially  so  if  the 
shipment  weighs  more  than  56  pounds  to  the  cubic  foot.  If  the 
weight  is  less  than  this  the  freight  is  naturally  calculated  on  the 
measurement  basis.  There  are  no  definite  rules,  however,  as  con- 
tracts must  invariably  be  made,  and  the  law  of  supply  and  demand 
governs,  to  a  very  considerable  extent,  this  phase  of  commercial 
intercourse.  In  order  to  make  calculations  easily  and  quickly, 
every  shipping  clerk  should  be  supplied  with  a  book  containing 
computations  of  cubic  measurements.  Another  requisite  is  a  table 
for  quick  conversion  of  avoirdupois  weights  to  the  metric  system, 
which  is  used  in  all  the  Latin  American  countries. 

How  to  Determine  the  Measurements  of  a  Shipment. — The 
measurements  of  a  shipment  must  invariably  be  calculated  by 
the  extreme  length,  breadth,  or  thickness.  If  battens  or  strips 
are  nailed  along  the  end  of  a  case,  the  tape  must  be  passed  around 
the  outside  thereof.  Accuracy  is  very  essential  as  numerous  meth- 
ods of  calculation  are  involved,  but  the  safest  plan  is  to  multiply  the 
figure  of  the  three  dimensions  as  stated,  after  reducing  them  to 
inches  by  using  1728  (the  number  of  cubic  inches  in  a  cubic  foot) 
as  a  divisor ;  the  result  will  be  the  cubic  contents.  This,  of  course, 
can  easily  be  reduced  to  feet. 

The  Meaning  of  Minimum  Bills  of  Lading. — All  steamship  lines 
fix  a  minimum  cliarcje  for  the  freight  carried  on  one  bill  of  ladins^. 
In  making  this  charge  no  account  is  taken  of  the  amount  of  the 
weight  or  bulk  of  the  freight.  Because  of  this  fact,  forwarding 
agencies  seek  to  combine  several  small  shipments  on  one  bill  of 
lading  in  order  that  the  freight  on  each  individual  shipment  may 
be  more  reas()nal)le. 

Rates  Dependent  upon  Shape. — As  the  largest  dimensions  axe 
taken  for  length,  breadth,  and  thickness,  great  care  should  be 
exercised  in  planning  the  packing,  as  the  steamship  company  is 
accustomed  to  make  an  extra  charge  for  "dunnage."  By  this  is 
meant  the  cost  of  using  lumber  carried  on  the  steamship  to  provide 


FEEIGHT  FORWARDING  185 

for  the  proper  stowing  in  the  hold  of  the  vessel  of  packages  of 
this  shape.  This  applies  with  particular  force  to  an  irregu- 
lar bulk. 

The  Meaning  of  the  Word  "Primage/' — Beginners  in  the  export 
business  frequently  wonder  at  the  word  "primage,"  which  is  used 
in  most  ocean  freight  rates.  This  is  a  survival  of  an  old  custom 
which  permitted  the  master  of  the  vessel,  or  his  seamen,  to  re- 
ceive a  payment  for  particular  care  in  handling  shipments  in- 
trusted to  them.  While  this  naturally  has  long  since  been  discon- 
tinued, the  primage  is  still  charged,  and  may  be  the  profit  to  the 
steamship  line  itself,  to  its  agents,  or  to  its  solicitors.  Naturally 
to  the  shipper  it  is  of  slight  interest  to  whom  this  payment  is  made, 
but  it  must  invariably  be  figured  as  part  of  the  freight  rate. 

Unsettled  Steamship  Rates  Compel  Contracts. — Rates  for  carry- 
ing freight  to  Latin  American  ports  fluctuate  greatly  and  are 
governed  solely  by  the  law  of  supply  and  demand.  In  1914,  one  of 
the  results  of  the  European  War  was  the  instant  soaring  of 
freight  rates  due  to  lack  of  steamship  facilities. 

How  to  Obtain  Rates. — Rates  may  be  obtained  from  the  follow- 
ing sources : 

1.  The  Commercial  or  Export  Freight  Agents  of  the  Bailroad 
Companies.  Railroads  with  a  large  tonnage  have  established  regu- 
larly organized  foreign  departments  whose  services  will  be  found 
valuable. 

2.  From  Steamship  Agencies.  Many  steamship  companies  have 
agents  in  interior  points  who  are  in  position  to  give  information 
relative  to  rates  of  freight,  dates  of  sailing,  etc.  Such  informa- 
tion may  also  be  obtained  by  applying  to  the  offices  of  the  steam- 
ship lines  at  the  seaboard. 

3.  From  Responsihle  Forwarding  Agents.  By  reason  of  their 
volume  of  business,  they  are  enabled  to  contract  with  steamship 
lines  for  space,  which  they  in  turn  sell  at  a  profit.  By  correspon- 
dence with  several  agents  the  best  rates  may  be  obtained.  The 
question  of  ocean  rates  should  be  thoroughly  investigated  inasmuch 
as  they  are  not  fixed  and  there  is  no  law  which  regulates  them  as 
in  the  case  of  railroad  freight  rates. 

Handling  of  Shipments  to  Remote  Points. — Shipments  made  to 
Latin  America  are  not  infrequently  consigned  to  places  very  diffi- 
cult of  access,  to  which  neither  railroad  nor  steamship  agents  are 


186  EXPORTING  TO  LATIN  AMERICA 

in  a  position  to  quote  rates.  When  a  through  rate  is  desired,  the 
manufacturer  can  easily  obtain  it  by  communicating  with  reli- 
able freight  forwarding  houses  in  New  York.  The  latter,  by  reason 
of  their  relations  with  customs  brokers  in  the  Latin  American 
republics  and  other  import  agents,  have  unusual  facilities  for  ob- 
taining a  knowledge  of  local  foreign  conditions. 

Importance  of  Shipping  Documents. — No  matter  where  ship- 
ments originate,  nor  how  they  are  forwarded,  the  necessity  for 
proper  documents  remains  the  same  inasmuch  as  shipments  car- 
ried to  Latin  American  ports  by  steamship  companies  must  leave 
via  a  port.  In  the  United  States,  the  greatest  volume  of  exports 
is  via  the  port  of  New  York,  but  shipments  via  other  ports,  such 
as  Boston,  Philadelphia,  Mobile,  New  Orleans,  and  San  Francisco, 
are  increasing  at  a  very  rapid  rate.  No  matter  what  agency  is 
used  for  forwarding  the  goods,  it  is  indispensable  that  documents 
should  be  in  the  possession  of  the  consignee  when  the  shipment 
arrives  and  as  long  before  that  as  is  possible  in  order  that  arrange- 
ments may  be  made  for  the  payment  of  the  duty,  the  disposal  of 
the  goods,  etc.  The  failure  of  manufacturers  to  attend  to  the 
prompt  forwarding  of  documents  often  leads  to  serious  complica- 
tions, expenses  for  storage,  and  other  items  which  are  invariably 
charged   to   the   shipper. 

For  Shipments  "in  Transit." — When  a  shipment  is  consigned 
via  a  port  in  a  country  other  than  the  ultimate  destination,  that 
fact  should  be  specified.  Thus  a  shipment  for  La  Paz,  Bolivia,  if 
consigned  via  Mollendo,  Peru,  should  be  clearly  marked  on  the 
papers,  "Mollendo,  in  transit  to  La  Paz."  This  will  avoid  diffi- 
culties with  custom  houses,  likewise  the  payment  of  storage  charges 
and  other  unusual  expenses  for  freight  and  liandling. 

Forwarding  Documents  for  Shipments  via  Frontier  Points. — 
Many  shipments  arc  made  by  American  manufacturers  direct  to 
Mexico.  The  importation  of  such  shipments  is  attended  to  by 
custom  house  agents  whose  names  are  usually  given  by  the  im- 
porters. They  may  also  be  obtained  from  the  railroad  agents 
and  directories.  When  forwarding  sliipmcnts  of  this  character, 
a  copy  of  the  bill  of  lading,  together  with  copies  of  the  invoice, 
should  be  sent  to  the  customs  agent  at  the  ])articular  port  of  entry 
Ihrough  which  it  is  necessary  to  consign  the  shipment,  with  the 
request  that  the  necessary  dixiimonts  be  o])tai)ied  and  the  shipment 


FREIGHT  FOEWARDING  ISt 

cleared  and  dispatched  to  the  interior  with  the  least  possible  dela3^ 
The  original  invoice,  together  with  the  railroad  bill  of  lading,  is 
sent  direct  by  the  manufacturer  to  his  customer. 

Payment  of  Inland  Freight. — No  matter  to  whom  goods  are 
consigned  at  the  seaboard,  whether  to  export  agents,  to  freight 
forwarders,  or  to  a  steamship  company,  the  inland  freight  should 
be  prepaid,  inasmuch  as  doing  this  obviates  considerable  delay  in 
forwarding  the  shipment  and  simplifies  its  dispatch  from  the 
port.  When  the  shipment  has  been  placed  on  board  the  railroad 
and  the  bill  of  lading  obtained,  the  latter,  together  with  copies  of 
the  invoice,  should  be  sent  to  whosoever  will  attend  to  the  for-' 
warding  of  the  shipment  from  the  port.  Any  instructions  re- 
ceived from  tlie  customer  should  also  be  given. 

Avoiding  Excessive  Transfer  Charges. — One  of  the  charges 
against  which  many  complaints  are  directed  is  that  of  transferring 
shipments  from  the  freight  station  of  the  railroad  company  which 
hauls  the  shipment  from  the  point  of  origin  to  the  seaboard.  This 
is  particularly  true  when  shipments  are  handled  in  the  port  of 
New  York,  inasmuch  as  local  conditions  make  transfer  charges 
necessarily  very  high.  Because  of  the  numerous  and  widely  scat- 
tered terminals  and  steamship  docks,  it  is  of  the  highest  importance 
that  the  inland  shipper  should  consign  his  shipment  to  the  railroad 
pier  nearest  to  the  steamship  line  which  is  to  carry  it.  In  such 
calculations  the  export  freight  agents  of  the  railroad  companies  are 
of  great  assistance,  as  are  also  reliable  forwarding  agencies.  Ship- 
ping clerks  should  be  warned  carefully  to  investigate  this  matter, 
inasmuch  as  shipments  to  Latin  America  are  carried  by  different 
lines,  and  it  should  be  determined  in  advance  of  the  shipment 
exactly  what  steamship  company  shall  handle  it,  in  order  that 
proper  directions  may  be  supplied.  Transfer  charges  represent 
the  expense  of  hauling  or  trucking  and  ferrying  shipments  from  the 
freight  depot  of  the  inland  carrier  to  the  pier  or  wharf  of  the  out- 
going steamer.  Unscrupulous  forwarding  agents  prey  on  the  igno- 
rance of  the  shipper  and  make  unwarranted  charges  for  such 
services. 

How  to  Take  Advantage  of  Free  Lighterage. — The  privilege  of 
free  lighterage  granted  to  freight  shipped  in  carload  lots  is  an 
important  factor  to  large  shippers.  In  order  to  obtain  the  benefit 
of  this  privilege  every  bill  of  lading  for  freight  in  carload  lots 


188  EXPORTING  TO  LATIN  AMERICA 

should  read  very  definitely,  "lighterage  free."  If  this  is  not  done, 
extra  charges  are  assessed  for  cartage  from  the  railroad  freight 
depot  to  the  steamship  pier.  In  the  event  that  the  latter  is  in 
Hohoken  or  Brooklyn,  an  extra  charge  for  ferriage  will  also  be 
added.  Regulations  relative  to  free  lighterage  in  the  port  of  New 
York  may  be  obtained  through  forwarding  agents. 

The  Use  of  Shipping-  Permits. — No  matter  if  the  shipper  himself 
or  his  agent  arranges  for  the  forwarding  of  a  shipment  from  a 
port,  it  is  indispensable  that  a  shipping  permit  be  obtained 
from  the  steamship  company.  This  permit  is  gotten  in  the 
name  of  the  shipper  or  the  freight  forwarder  who  has  obtained 
from  the  steamship  company  a  contract  for  the  room.  In  a  per- 
mit are  specified  the  date  that  the  shipment  is  to  be  delivered 
to  the  steamer,  the  exact  place  where  it  is  to  be  delivered,  and 
other  instructions,  all  of  which  must  be  carefully  complied 
with. 

How  Goods  Are  Delivered. — Teamsters  or  truckmen  carrying  the 
shipment  for  M'hich  a  permit  has  been  issued  must  present  it 
to  the  clerk  of  the  steamship  line  on  the  pier  before  delivery  is 
made  or  simultaneously  with  the  shipment.  It  is  highly  important 
that  merchandise  shipped  in  bond  shall  not  be  delivered  to  the 
steamer  until  the  latter  is  ready  for  loading. 

The  Use  of  Shipping  Receipts. — The  usual  dray  ticket  will  gen- 
erally sutlice  for  obtaining  a  receipt  from  a  steamship  company. 
In  such  instances,  however,  it  is  essential  to  obtain  special  blanks 
which  are  supplied  gratis  by  the  steamship  lines.  As  already  stated, 
it  is  advisable  to  number  packages  and  to  mark  them  with  the 
utmost  care.  Such  numbers  and  marks  must  appear  on  the  dray 
ticket  or  receipt  issued  by  the  steamship  company.  The  exact  con- 
tents of  cases,  barrels,  or  packages  must  be  absolutely  and  correctly 
stated.  Dray  tickets  or  receipts  must  be  arranged  in  the  name  of, 
or  indorsed  to,  the  individual  to  whom  the  steamship  bill  of  lading 
is  issued.  The  receipts  are  taken  up  by  the  steamship  line  at  the 
time  of  issuing  the  bill  of  lading. 

The  Use  of  Custom  House  Clearance. — One  of  the  documents 
of  greatest  importance  in  the  forwarding  of  freight  from  all 
American  ports  is  the  custom  house  clearance.  This  is  a  form 
which  the  collectors  of  customs  are  compelled  to  demand  in  order 
that  steamers  may  be  properly  cleared.     The  steamship  lines  that 


FREIGHT  FORWARDING  189 

carry  freight  to  Latin  American  ports  are  among  those  which 
are  most  vigorous  in  their  complaints  relative  to  the  failure  of 
shippers  to  present  proper  custom  house  clearances  when  bills 
of  lading  are  issued.  The  custom  house  clearance  is  a  document 
which  must  be  carefully  filled  out  in  accordance  with  certain 
official  instructions  and  is  filed  by  the  steamship  lines,  together 
with  its  own  manifests,  in  the  United  States  Custom  House.  A 
copy  should  be  reserved  by  the  shipper  for  use  in  special  cases; 
for  instance,  in  the  event  that  shipments  are  returned  to  the 
United  States,  the  custom  house  clearance  serves  absolutely  to 
identify  the  goods  and  may  obviate  the  difficulties  of  an  assess- 
ment of  duties. 

Proper  Custom  House  Clearpnces  Required. — It  is  difficult  for 
the  manufacturer  in  the  interior,  unacquainted  with  the  regulations 
incident  to  the  exporting  of  merchandise,  to  understand  many  of 
these  requirements  and  exactions.  It  is,  however,  important  to 
realize  that  when  goods  forwarded  for  export  are  not  described 
to  the  satisfaction  of  the  United  States  custom  house  authorities, 
not  only  in  reference  to  description  of  the  article  but  as  to  quantity 
and  value,  the  sailing  of  a  vessel  may  be  delayed  until  these  re- 
quirements are  complied  with.  The  need  for  this  is  obvious,  as 
the  shipment  of  contraband  or  articles  forbidden  because  of  certain 
international  agreements  might  involve  the  United  States  in  serious 
difficulties. 

Regulations  to  Supply  Custom  House  Clearances. — The  United 
States  government  insists  tbat  shipper's  manifests  or  custom  house 
clearances  must  be  sworn  to  by  the  consignor  in  person,  by  the 
owner,  or  by  a  properly  constituted  and  capable  agent  of  legal  age. 
Wlien  such  an  agent  is  appointed,  the  nomination  must  be  made 
in  writing  by  the  principal,  and  the  agent  must  possess  a  full 
knowledge  of  the  value  of  the  shipment.  Railroad  companies  are 
not  permitted  to  carry  export  shipments  or  consignments  to  non- 
contiguous territories  of  the  United  States,  such  as  Porto  Rico, 
Panama,  the  Hawaiian  Islands,  the  Philippines,  etc.,  unless  they 
first  obtain  a  detailed  description  of  the  shipment,  its  actual  cost, 
a  memorandum  of  quantity,  etc.,  all  of  which  statements  require 
the  signature  of  the  shipper  or  of  his  agent. 

Useful  Publications  in  Shipping  Problems. — ^There  are  several 
important  publications  which  are  valuable  aids  in  the  solution  of 


190  EXPORTING  TO  LATIN  AMERICA 

shipping  problems.     These   are  listed  on  page  490   of  the  Ap- 
pendix. 


BANKING  DOCUMENTS,  ACCEPTANCES  AND  THEIR 
COLLECTION 

Bankers'  Credits  and  Drafts. — American  manufacturers  who 
have  received  orders  from  Latin  American  countries  have  often, 
without  investigation,  informed  their  correspondents  that  no  ship- 
ment would  be  made  unless  cash  was  sent.  Not  infrequently  such 
refusals  have  been  made  to  firms  enjoying  in  their  own  countries 
the  same  or  perhaps  a  better  credit  than  the  manufacturer.  In 
view  of  the  fact  that  many  firms  in  Latin  America  have  frequently 
been  victimized  by  American  manufacturers  or  export  houses  to 
whom  they  made  remittances  in  advance,  they  naturally  hesitate 
to  remit  unless  assured  of  the  responsibility  of  the  dealers  with 
whom  they  wish  to  do  business.  These  difficulties  have  been  ob- 
viated by  the  establishment  of  what  is  known  as  "bank  credit," 
which  serves  to  protect  both  the  buyer  and  the  seller.  Its  operation, 
which  is  very  simple,  merely  consists  in  the  payment  by  the  bank 
(with  whom  the  credit  has  been  established  for  the  account  of  the 
Latin  American  merchant)  of  a  definite  sum  upon  the  presentation 
of  the  bill  of  lading  covering  the  shii^ment.  When  such  credits 
are  arranged  the  bank  notifies  the  manufacturer,  and  by  this  means 
large  importers  of  Latin  America  have  been  enabled  to  take  ad- 
vantage of  every  discount  obtainable  by  the  payment  of  cash. 

What  a  Draft  Is. — A  draft  is  a  document  drawn  either  by  a 
manufacturer  or  merchant  on  a  debtor  for  value  received.  Drafts 
are  of  various  sorts.  They  may  be  drawn  either  with  or  without 
documents  attached.  In  the  Jailer  case  the  draft,  which  is  usu- 
ally drawn  at  sight  or  payable  at  a  certain  definite  time,  must 
be  accepted  by  the  drawee  before  the  documents  are  handed  over 
by  the  bank,  to  enable  the  consignee  to  obtain  possession  of  the 
shipment. 

These  documents  are  the  bills  of  lading  issued  by  the  railroad 
companies  or  by  the  steamship  linos.  When  such  documents  are 
issued  by  the  railroads,  they  are  called  "export  bills"  and  cover 
the  carriage  of  the  merchandise  from  point  of  origin  to  destina- 


BANKING  DOCUMENTS  191 

tion.  The  "original"  bills  of  lading  are  those  issued  by  the  steam- 
ship companies  from  the  port  of  sailing. 

The  Different  Kinds  of  Drafts. — As  a  matter  of  convenience  to 
dealer  and  banker,  drafts  on  Latin  American  merchants  should  be 
drawn  at  a  certain  number  of  days  sight  (say  5  or  10),  as  the 
exact  date  on  which  they  are  payable  is  thus  quickly  seen. 

Drafts  are  of  two  kinds,  "documentary,"  and  "clean."  The 
first  is  merely  a  draft  which,  after  certain  documents,  including 
the  bill  of  lading,  are  attached,  is  forwarded  to  a  bank  and  subject 
to  acceptance  or  payment.  A  "clean"  draft  is  a  draft  drawn  on 
a  consignee  without  documents.  The  latter  is  frequently  used 
as  a  spur  to  debtors  whose  accounts  are  not  paid  at  maturity,  A 
failure  to  pay  a  documentary  draft  often  results  in  a  serious  im- 
pairment of  credit,  .while  but  little  attention  is  paid  to  the  non- 
payment of  a  clean  draft  which  may  or  may  not  represent  an 
indebtedness.  When  drafts  at  sight  are  accompanied  by  bills  of 
lading,  payment  on  presentation  is  expected,  but  in  most  instances 
such  documents  are  held  by  banks  until  arrival  of  the  merchan- 
dise. When  drafts  are  drawn  payable  at  a  given  time  they  are 
known  as  D.A.  (documents  to  be  accepted),  or  D.P.  (documents 
to  be  paid). 

Hajidling  of  Drafts  "to  Order." — Shipments  to  Latin  America 
are  made  either  direct  on  open  account  or  "to  order"  against  ship- 
ping documents.  The  first  method  requires  no  detailed  explana- 
tion. The  second  means  that  shipments  are  made  to  the  order 
of  the  shipper  on  a  bill  of  lading  which  reads  "to  order,"  and  at- 
tached to  which  is  a  draft  payable  at  sight,  or  at  a  certain  definite 
date,  or  at  a  certain  number  of  days  sight.  In  the  latter  instance, 
when  the  draft  is  accepted  by  the  drawee  (i.  e.,  his  name  written 
across  the  face  of  the  draft),  it  is  known  as  an  "acceptance"  and 
handled  as  such.  Most  of  the  shipments  made  to  the  republics  of 
Cuba  and  Mexico,  to  some  points  in  Central  America,  and  to  the 
United  States  Territory  of  Porto  Rico  are  on  open  account.  The 
acceptance  is  of  the  greatest  importance  in  international  commerce, 
as  it  permits  the  houses  of  established  reputation  to  use  their 
credit  freely  in  doing  business  and  extending  their  sales.  Ship- 
ments to  order  may  be  made  with  perfect  safety  to  all  the  Latin 
American  countries  which  protect  the  order  bill  of  lading.  This 
means  that  only  with  the  bill  of  lading,  consular  invoice,  and  mani- 


192  EXPORTING  TO  LATIN  AMERICA 

fest  is  it  possible  to  obtain  possession  of  shipments.  The  bill  of  lad- 
ing covering  a  shipment  consigned  to  order  is  attached  to  a  draft 
which  must  either  be  paid  or  accepted  before  the  bank  or  corre- 
spondent of  the  shipper  releases  this  important  document.  There 
are  but  four  countries  in  Latin  America  where  goods  shipped  on 
order  bills  of  lading  may  be  obtained  without  the  original  bill  of 
lading.  These  are  :  Colombia,  Panama,  Santo  Domingo,  and  Vene- 
zuela.   "To  Order"  shipments  are  prohibited  by  Venezuela. 

Shipments  made  to  these  republics  on  the  order  bills  of  lading 
do  not  have  the  security  of  those  shipped  to  other  Latin  American 
republics,  and  consignees  have  frequently  obtained  possession  with- 
out the  bill  of  lading.  It  is,  of  course,  possible  to  ship  on  order 
bills  of  lading  and  drafts  can  be  forwarded  for  collection,  with  the 
bill  of  lading  attached,  through  banks  or  other  correspondents. 
While  shipments  made  to  houses  of  recognized  standing  run  no 
risk  whatever,  it  is  important  that  unusual  care  should  be  taken 
in  making  investigation  of  applicants  for  credit. 

Handling  Bills  of  Lading  with  Drafts. — On  all  documents  relat- 
ing to  the  export  business  absolute  accuracy  is  indispensable.  This 
applies  with  particular  force  to  bills  of  lading,  especially  when  they 
become  parts  of  credit  transactions  and  are  to  be  used  in  connec- 
tion with  drafts  which  are  discounted  by  banks. 

Following  are  particulars  to  be  followed  in  preparing  bills  of 
lading : 

1.  They  should  be  issued  to  order  of  the  shippers.  The  latter 
must  place  on  them  an  indorsement  in  blank  that  the  title  to 
the  merchandise  may  remain  as  a  lien  to  the  holder  of  the 
draft. 

2.  All  copies  of  the  bill  of  lading  must  be  furnished  to  the  bank 
which  discounts  the   draft. 

3.  The  number  of  copies  of  the  bill  of  lading  issued  must  al- 
ways be  stated  on  the  face  of  the  bill  of  lading.  These  must  be 
supplied  in   duplicate  or  triplicate. 

Other  Docmnents  to  Be  Attached  to  Drafts. — With  every  ship- 
ment carrying  drafts  against  documents  it  is  highly  important  to 
t'upply  an  insurance  certificate.  Like  the  bill  of  lading,  it  is  made 
to  the  order  of  the  shipper  and  indorscnl  in  blank.  This  enables 
the  holder  to  collect  for  loss  of  the  shipment  in  case  it  should  be 
necessary  to  make  a  claim.     The  certificate  is  for  the  amount  of 


BANKING  DOCUMENTS  193 

the  shipment  plus  something  in  excess  of  the  invoice  value,  usually 
10  per  cent.,  to  cover  the  freight  and  other  charges.  Another  docu- 
ment that  is  desirable,  but  not  indispensable,  is  an  invoice  covering 
the  shipment  of  the  goods.  This  serves  to  increase  confidence  in 
the  reliability  of  the  document.  If  desired,  it  may  be  inclosed 
in  an  envelope  attached  to  the  draft,  being  sealed  to  guard  against 
publicity. 

Exactions  of  Banks  Regarding  Bills  of  Lading. — In  the  fi- 
nancing of  shipments  for  export,  trouble  sometimes  arises  with 
shippers  who  turn  over  to  the  banks  drafts  with  only  the  domestic 
railroad  bill  of  lading,  and,  in  some  instances,  merely  a  dray 
ticket  bearing  the  rubber  stamp  signature  of  a  local  freight  agent. 
Banks  invariably  insist  upon  having  attached  to  the  drafts  either 
all  copies  of  the  original  bill  of  lading  or  the  copies  of  the  bill 
of  lading  issued  by  a  railroad  company.  This  is  due  to  the  fact 
that  ownership  of  the  property  is  vested  in  the  bill  of  lading; 
consequently  the  freight  carrier  who  issues  it  must  accept  re- 
sponsibility and  likewise  protect  the  shipment.  From  this  reason 
an  inland  railroad  bill  of  lading  is  superseded  by  an  ocean  bill 
of  lading,  inasmuch  as  two  sets  of  documents  cannot  govern  a  single 
shipment. 

Making  Bill  of  Lading  "to  Order." — It  is  almost  the  invariable 
custom  in  handling  shipments  to  Latin  America  to  use  bills  of 
lading  which  are  consigned  "to  order.''  This  is  done  by  writing 
on  a  bill  of  lading,  in  the  place  where  the  consignee's  name  would 
be  written,  "order,"  or  "shipper's  order,"  and  under  this  "Notify 
(the  name  and  address  of  the  consignee)."  In  handling  such  bills 
of  lading  before  forwarding  them  they  are  signed  by  the  shipper 
and  on  the  back  is  placed  an  indorsement,  this  being  usually  in 
blank. 

How  to  Insure  Prompt  Forwarding  of  Documents. — When  ship- 
ments are  made  to  republics  on  the  east  coast  of  South  America, 
all  the  documents  relative  thereto  should  be  forwarded  by  the 
same  steamer  which  carries  the  freight,  thus  assuring  their 
prompt  delivery  to  the  consignee.  As  the  lines  which  ply  in  the 
South  American  trade  do  not  issue  ocean  bills  of  lading  to  the 
freight  forwarders  (or  to  the  agents  of  the  shippers)  until  the 
shipments  are  in  the  holds  of  the  vessel,  it  usually  happens  that 
such  bills  of  lading  are  probably  not  available  until  a  day  or  two 


194  EXPORTma  TO  LATm  AMERICA 

before  the  sailing  of  the  ship.  For  this  reason  also  a  responsible 
forwarding  agent  should  be  employed,  the  expense  being  relatively 
small  in  comparison  to  the  service  obtained.  As  many  manu- 
facturers are  at  too  great  a  distance  inland,  no  time  is  left  for  them 
to  obtain  the  ocean  bill  of  lading,  which  they  must  sign  and  in- 
dorse that  the  shipment  may  be  properly  forwarded.  By  making 
special  arrangements  with  interior  banks,  the  correspondent  of 
the  latter,  located  in  New  York  City,  is  enabled  to  furnish  proper 
protection.  The  correspondent,  having  been  granted  written  au- 
thority or  holding  the  power  of  attorney  of  the  manufacturer,  can 
sign  and  indorse  the  bills  of  lading  and  mail  them  together  with 
drafts,  shipping  manifests,  consular  invoices,  and  all  other  neces- 
sary documents,  by  the  same  steamer  which  carries  the  freight. 

The  Sending  of  Documents  for  Acceptance. — If  it  has  been 
understood,  in  transacting  business  with  the  Latin  American  mer- 
chant, that  a  draft  is  to  be  made  for  the  value  of  the  merchandise, 
and  the  manufacturer  either  does  not  care  to  discount  the  draft 
or  is  unable  to  do  so,  the  draft  accompanied  by  the  bill  of  lading, 
insurance  certificate,  invoice,  etc.,  all  properly  indorsed,  is  sent 
forward  for  acceptance.  The  manufacturer  frequently  sends  the 
documents  direct  to  the  foreign  bank  in  order  to  minimize  the 
charges  for  collection.  If  the  draft  is  at  60  days  sight  the  con- 
signee, upon  notice  that  the  draft  is  in  the  hands  of  the  bank, 
personally  writes  across  the  face  of  the  draft  "Accepted,"  and 
the  date. 

The  documents  covering  the  draft  are  then  handed  to  him  and 
the  draft  is  held  until  maturity  when  it  is  again  presented  and 
collected.  In  the  event  that  the  draft  is  not  paid  the  bank  may 
cable  for  instructions  or  return  it  to  the  drawer. 

The  Routine  of  Making  Shipments  to  Order. — When  a  manu- 
facturer makes  a  shipment  consigned  to  Latin  America  with  draft 
attached  to  bill  of  lading,  the  following  routine  is  observed : 

It  must  first  be  determined  whether  the  shipment  is  to  be 
made  direct  or  in  care  of  a  forwarding  agent.  If  a  manufacturer 
instructs  his  agent  to  handle  a  shipment  he  must  give  full  direc- 
tions as  already  outlined,  and  accompanied  with  instructions  re- 
garding the  draft.  If  tlie  manufacturer  forwards  a  shipment  in 
care  of  a  steamship  agent  and  will  himself  attend  to  the  forward- 
ing of  documents  for  collection,  he  must  direct  that  the  consular 


BANKmG  DOCUMENTS  195 

invoices,  ocean  bills  of  lading,  etc.,  be  forwarded  to  him.  When 
these  are  returned,  the  original  and  duplicate  bill  of  lading,  the  con- 
sular invoice  (as  many  copies  as  may  be  required  under  the  laws 
of  the  country),  the  shipping  manifest,  and  the  insurance  policy 
are  attached  to  a  draft.  The  latter  is  made  out  in  accordance  with 
the  terms  granted  by  the  manufacturer's  representative,  or  as 
previously  arranged.  In  the  draft  is  stated  at  how  many  days 
sight  it  is  drawn,  or  the  exact  date  it  is  payable.  All  drafts  are 
made  in  duj^licate,  and,  in  order  to  insure  the  payment  of  only 
one  draft,  the  duplicate  bears  the  clause  that  it  shall  only  be 
paid  in  the  event  that  the  original  is  npt  paid. 

How  Drafts  Are  Forwarded  and  Collected. — Drafts  are  always 
drawn  to  the  order  of  the  manufacturer  and  indorsed  in  blank. 
There  are  various  methods  of  collecting  a  draft:  (1)  It  may  be 
placed  with  a  manufacturer's  local  bank  which  forwards  it  to  a 
New  York  correspondent  which  in  turn  sends  it  to  its  own  cor- 
respondent in  Latin  America;  (2)  it  may  be  sent  direct  by  the 
manufacturer  to  the  New  York  agent  of  a  bank  whose  business 
is  in  Latin  America;  (3)  it  may  be  forwarded  direct  by  the  manu- 
facturer to  the  foreign  bank.  The  factors  which  determine  the 
method  to  be  followed  are  these :  the  charges  usually  paid  for  col- 
lecting, or  the  relations  of  the  manufacturer  with  the  correspondent. 
Upon  arrival  of  the  draft  at  its  Latin  American  destination,  if 
all  its  documents  are  found  in  order,  the  draft  is  accepted  payable 
upon  the  date  to  be  specified  in  the  body  and  thereupon  the  docu- 
ments including  the  original  bill  of  lading,  consular  invoice,  etc., 
are  delivered. 

Important  Detail  in  Making  Draft. — Instructions  concerning 
the  handling  of  drafts  should  be  very  explicit.  The  banker  or 
correspondent  should  be  notified  what  course  to  pursue  in  the 
event  of  the  nonpayment  or  nonaeceptance,  and  what  extension 
of  time,  if  any,  should  be  granted.  If  documents  are  to  be  de- 
livered only  upon  payment  this  should  be  clearly  stated;  otherwise 
they  may  be  given  to  the  drawee  upon  mere  acceptance.  Instruc- 
tions should  also  be  given  as  to  protest  in  case  of  the  dishonoring 
of  the  draft.  Drafts  on  South  America  are  usually  drawn  in 
pounds  sterling  for  the  reason  that  by  this  method  possible  losses 
from  bankers'  charges  in  conversion  and  collection  are  avoided. 
Such  drafts  should  always  bear  a  clause,  "Payable  at  the  bank's 


196  EXPORTING  TO  LATIN  AMERICA 

selling  rate  for  sight  draft  on  London,"  or  "For  90-day  drafts  on 
London,"  in  accordance  with  the  terms  agreed  upon.  When  drafts 
are  drawn  in  dollars  the  following  clause  should  be  used:  "Pay- 
able at  the  bank's  selling  rate  on  New  York." 

The  Documents  Required  by  a  Bank. — The  utmost  care  is  neces- 
sary in  the  preparation  of  documents  for  shipments  upon  which 
banks  advance  money  against  acceptance.  The  following  papers 
are  required  by  banks  which  discount  drafts: 

1.  The  original  commercial  invoice  and  bill  of  lading. 

2.  The  necessary  number  of  copies  thereof,  in  accordance  with 
the  customs  regulations  of  the  country  to  which  the  shipment  is 
consigned. 

3.  Consular  invoice,  together  with  the  necessary  number  of 
copies  thereof. 

4.  Marine  insurance  certificate. 

5.  Any  other  documents  provided  for  in  the  regulations  of  the 
Latin  American  republics.  When  a  shipment  is  carried  by  a  steam- 
ship line,  the  original  ocean  bill  of  lading  must  be  attached,  to- 
gether with  any  negotiable  copies  that  may  be  issued.  Where  an  ex- 
port bill  of  lading  is  issued  by  a  railroad  company,  the  original 
and  negotiable  copies  thereof  are  also  required. 

Interest  and  Commission  on  Accepted  Drafts. — As  the  granting 
of  time  by  reason  of  a  draft  at  a  certain  period  sight  is  in  reality 
a  concession  of  credit,  it  is  customary  for  the  consignee  to  pay 
the  interest  on  the  draft.  This  is  calculated  from  the  date  of 
the  shipment  to  the  maturity  of  the  acceptance.  It  is  almost 
always  calculated  before  the  amount  is  inserted  on  the  draft,  as  this 
is  for  a  definite  sum  to  which  interest  is  not  added.  In  addition 
to  the  time  as  specified  in  the  draft  a  provision  is  made  for  the 
period  during  which  the  remittance  is  in  transit.  A  shipment 
consigned  via  New  York  to  a  point  in  Chile  would  require  on  an 
average  about  seventy-five  days  before  the  proceeds  of  the  draft 
could  reach  the  United  States.  Thus,  if  the  draft  were  drawn 
at  sixty  days  sight,  there  would  be  added  thereto  the  period  of 
seventy-five  days,  a  total  of  one  hundred  thirty-five  days  for  which 
interest  would  have  to  be  included.  Before  a  draft  is  made  it  should 
be  definitely  ascertained  for  what  time  the  interest  should  be 
figured.  The  best  places  to  obtain  this  information  are  the  banks, 
which  are  fully  aware  of  the  time  required.    Another  charge  that 


BANKING  DOCUMENTS  Id'? 

is  made  is  that  for  collecting.  This  may  also  be  determined  in 
advance  by  consulting  the  banks,  which  have  a  schedule  of  all 
the  charges  made  by  their  correspondents. 

The  Items  Which  Should  Be  Included. — There  are  certain 
charges  for  which  invoices  must  be  rendered,  and  which  must 
be  included  in  the  total  of  the  draft,  but  it  is  generally  wisest  to 
render  a  separate  invoice  for  these  charges  rather  than  include 
them  on  the  bill  for  the  merchandise.     These  items  should  be: 

1.  Inland  freight. 

2.  Ocean  freight. 

3.  Consular  fees,  including  the  cost  of  the  blanks,  certification 
and  the  bills  of  lading,  and  invoices. 

4.  Forwarding  charges  of  agents. 

5.  Marine  insurance. 

6.  Interest. 

7.  Collection  charges. 

Understanding  Regarding  Collection  Charges. — As  many  vexa- 
tious differences  arise  relative  to  the  charges  for  collecting  drafts 
(interest,  postage,  exchange,  commissions  for  collection),  the  manu- 
facturer should  have,  at  the  beginning  of  business  relations,  a 
definite  understanding  as  to  who  is  to  pay  the  cost  of  collection. 
Many  exporters  insist  that  the  customer  pay  these  charges,  and 
as  the  cost  may  reach  a  large  total  it  is  essential  that  the  ques- 
tion   be  determined  very  early. 

The  Theory  Regarding  Charges. — When  a  Latin  American  mer- 
chant places  an  order  in  the  United  States  he  arranges  to  make 
payment  here  or,  in  the  contrary  event,  to  have  a  draft  drawn 
against  him.  In  the  latter  case  it  should  be  definitely  stipulated 
whether  the  draft  is  to  be  drawn  in  dollars  or  the  money  of  the 
country  to  which  shipment  is  consigned.  The  Latin  American 
buyers  are  very  prone  to  object  to  the  charges  for  exchange  and  if 
the  latter  is  unfavorable  they  will  endeavor  to  place  the  expense 
on  the  shipper.  In  any  event,  as  there  will  always  be  a  charge  for 
collection,  this  question  should  be  definitely  settled  at  the  opening 
of  relations. 

Charges  Made  for  Collecting  Drafts. — The  charges  made  for 
collecting  drafts  vary  greatly  but  when  documents  are  sent  direct 
to  a  foreign  bank  by  the  shipper  the  charge  in  the  more  important 
commercial  centers  is  %  to  %  per  cent.     When  drafts  must  be 


198  EXPOETlNG  TO  LATIJ^  AMERICA 

sent  from  the  main  office  to  the  hranehcs  in  the  interior,  the 
charges  are  larger,  each  handling  incurring  an  additional  expense. 
In  the  event  that  drafts  are  forwarded  direct  to  remote  points  the 
charges  are  also  lower,  varying  from  %  to  2  per  cent.,  although 
the  latter  charge  is  very  rare. 

Where  Payments  Are  Usually  Made. — Because  of  the  fact  that 
a  credit  of  sixty  days  corresponds  almost  to  casli  terms  in  dealing 
with  Latin  America,  the  charges  for  interest  and  collection  are 
calculated  only  when  the  acceptance  reads  at  sixty  or  ninety  days 
sight  or  at  a  longer  period  after  the  arrival  of  the  shipment. 

How  to  Obtain  Lowest  Possible  Rates. — Manufacturers  who  dis- 
count drafts  may  find  it  to  their  interest  to  take  advantage  of 
bankers'  sight  exchange  on  London.  Whenever  a  manufacturer 
discounts  a  draft  covering  a  shipment  of  merchandise,  he  is  prac- 
tically negotiating  a  loan.  AMien  a  draft  is  made  at  ninety  days 
sight  on  a  Latin  American  country,  it  is  possible  to  obtain  a  ninety 
days  sight  exchange  on  London  at  a  much  lower  rate.  This  is  due 
to  the  fact  that  in  Latin  America  the  interest  rate  is  extremely  high 
and  very  much  in  excess  of  that  of  the  L^nited  States  and  England, 
Germany,  France,  Italy,  and  Spain. 

Procedure  in  Event  of  Non-payment. — No  matter  with  what 
care  credit  is  extended  to  Latin  American  buyers,  it  sometimes 
happens  that  drafts  drawn  against  documents  are  not  accepted. 
When  such  drafts  have  merely  been  forwarded  for  collection  the 
maker  (if  he  indicated  his  desire  to  be  notified)  is  advised  by 
cable  or  mail  and  must  arrange  for  disposition  of  his  shipment, 
which  can  be  done  either  by  ordering  its  return  or  by  ar- 
ranging with  some  other  importer  for  its  acceptance.  When  a 
draft  that  he  has  accepted  is  protested  because  of  non-payment 
the  drawer  may  place  the  matter  in  the  hands  of  a  lawyer  recom- 
mended by  the  bank  to  whom  the  documents  have  been  forwarded. 
This  is  occasionally  necessary  in  the  case  of  responsible  firms 
who  find  it  impossible  to  meet  drafts  at  maturity. 

How  Drafts  May  Be  Discounted. — It  is  possible  for  a  responsible 
manufacturer,  wlio  makes  his  shipments  with  drafts  attached  to 
documents  for  definite  acceptance,  to  realize  cash  immediately  upon 
forwarding  of  the  goods.  The  discounting  of  such  drafts  will 
become  far  more  common  than  it  has  been  in  the  past,  particularly 
as  the  recently  enacted  National  Banking  Law  makes  available 


BANKING  DOCUMENTS  199 

such  a  large  sum  of  money  for  discounting.  The  discounting  of 
such  drafts  is  still  considered  a  loan  to  a  shipper,  although  it  should 
not  be  so  regarded.  However,  the  accommodation  should  be  easily 
obtained  by  a  drawer  whose  credit  is  good. 

The  means  for  discounting  these  drafts  are  as  follows : 

1.  The  manufacturer's  local  banker.  It  will  be  somewhat  easier 
in  the  case  of  banks  which  have  foreign  departments. 

2.  Banking  institutions  in  the  port  cities,  particularly  New 
York. 

3.  Private  banking  houses  in  New  York  City. 

4.  The  branch  offices  of  banks  whose  principal  business  is  in 
Latin  America. 

5.  Eesponsible  forwarding  agents. 

It  is  naturally  far  easier  to  undertake  such  transactions  with 
banks  which  are  thoroughly  familiar  with  conditions  in  the  Latin 
American  countries.  As  the  trade  develops  and  specialized  knowl- 
edge increases  it  will  become  still  more  so,  and  the  discounting  of 
drafts  will  be  regarded  with  less  suspicion  than  it  has  been  in 
the  past. 

Discounted  Drafts  Represent  Credit  Transactions. — Where  a 
manufacturer  makes  a  shipment,  documents  attached  to  bill  of 
lading,  the  draft  to  be  accepted  at  a  fixed  period,  even  though  he 
is  successful  in  it  and  realizes  the  money  his  responsibility  remains 
until  the  draft  has  been  paid  by  the  customer.  It  is  even  more 
important  to  the  manufacturer  to  investigate  thoroughly  the  credit 
standing  of  his  customers  and  determine  their  responsibility  when 
arranging  the  discounting  drafts,  as  their  failure  to  make  pay- 
ments reflects  upon  his  standing.  Although  there  is  no  fixed  cus- 
tom, the  manufacturer  frequently  calculates  the  interest  for  the 
full  period  from  the  date  draft  is  issued  until  returns  therefrom 
are  in  his  possession,  compelling  the  consignee  to  pay  it. 

Acceptance  of  Time  Drafts. — One  of  the  sources  of  loss  to  Amer- 
ican manufacturers  has  been  the  acceptance  by  them  of  drafts 
which  seemed  perfectly  good  documents  but  which  developments 
proved  to  be  worthless.  The  method  employed  in  these  swindles 
has  been  as  follows : 

The  house  in  Latin  America  ordered  a  bill  of  merchandise  from 
an  American  importer.  Accompanying  the  order  was  a  draft  at 
90  or   120  days  sight  on  some   firm   in   England,   Germany,   or 


200  EXPORTING  TO  LATIN  AMERICA 

France.  The  manufacturer  placed  it  in  the  hands  of  his  local 
banker  for  collection;  the  latter  forwarded  it  to  his  correspondent 
who  obtained  without  any  difficulty  the  acceptance  of  the  drawee. 
Being  satisfied  that  the  draft  would  be  paid,  the  merchandise  was 
shipped.  When  the  time  specified  in  the  draft  expired  and  the 
draft  was  presented  for  payment,  it  was  refused,  and  the  American 
manufacturer  realized  too  late  that  he  had  been  victimized.  Credit 
should  not  be  based  on  drafts  drawn  in  this  manner  unless  the 
responsibility  of  the  firm  against  whom  the  drafts  are  drawn  is 
thoroughly  investigated. 


CHAPTEE  XII 

CREDITS  IN  LATIN  AMERICA.     TERMS,  FINANCING,  COLLECTING 
PAST  DUE  ACCOUNTS 

Introduction. — One  of  the  complaints  most  frequently  made  by 
American  consuls  and  Latin  American  merchants  who  have  sought 
to  establish  trade  relations  with  American  exporters  is  that  the 
latter  often  refuse  to  grant  credit  and  insist  upon  payment  before 
shipment.  When  it  is  realized  how  difficult  it  would  be  to  estab- 
lish a  domestic  business  under  such  conditions,  it  is  apparent  why 
trade  with  Latin  America  cannot  be  built  in  that  manner.  The 
conditions  affecting  credit  risks  in  most  of  the  countries  are 
such  that  if  an  effort  is  made  to  ascertain  the  standing  of  an  im- 
porter very  little  risk  is  run.  For  this  reason  the  importance  of 
extending  credit  must  be  recognized  and  a  competent  credit  man 
can  as  easily  determine  whether  merchants  in  Buenos  Aires  or 
Bogota  are  entitled  to  credit  as  he  can  intelligently  determine 
this  question  in  the  case  of  the  small  merchant  in  a  neighboring 
town. 

Misunderstandings  Eeg-arding  Terms. — The  assertion  is  fre- 
quently made  that  European  countries  have  been  so  successful  in 
Latin  America  because  of  the  terms  granted  by  them,  and  it  has 
been  urged  by  many  American  manufacturers  that  because  of 
this  they  are  unable  to  enter  the  markets.  It  is  sometimes  for- 
gotten that  in  certain  lines  of  manufactures  in  the  United  States 
the  custom  still  prevails  of  granting  terms  which,  if  extended  to 
Latin  America,  would  be  considered  very  long.  An  instance  of 
this  practice  is  the  datings  granted  by  manufacturers  who  make 
shipments  to  their  customers  in  the  Western  or  Southern  states, 
beginning  early  in  May,  with  invoices  payable  October  1st  to 
November  1st.  It  sometimes  occurs  that  at  maturity  such  accounts 
cannot  be  paid  and  even  a  further  extension  is  necessary,  although 
this  is  not  usual.  IManufacturers  who  can  grant  such  accommoda- 
tions in  the  United  States  should  find  no  difficulty  in  extending  the 

201 


202  EXPORTING  TO  LATIN  AMEEICA 

same  terms  to  Latin  America.  On  the  other  hand  there  has  been 
a  noticeable  effort  in  certain  quarters  to  shorten  the  time  granted 
Latin  American  buyers  by  European  houses. 

Misunderstandings  Eegarding  European  Methods. — The  credit 
methods  of  European  exporters  are  frequently  misunderstood.  Gen- 
erally speaking,  European  manufacturers  observe  the  same  methods 
that  a  well-managed  American  house  would  use  in  granting  credits 
to  clients.  The  traveling  representative  is  an  important  factor,  as 
he  is  expected  to  make  personal  investigation,  which  is  regarded 
as  of  great  value  by  his  firm. 

European  Terms  in  Latin  America. — The  terms  upon  which, 
importations  are  made  from  European  countries  vary,  but  90  days 
credit  is  generally  given.  In  addition  there  is  an  allowance  of  30 
days  for  the  arrival  of  the  merchandise  and  30  days  for  receipt 
of  the  payment  of  drafts,  a  total  of  150  days  credit,  for  which 
accommodation  G  per  cent,  interest  is  paid.  In  some  instances, 
responsible  houses  discount  their  bills  as  in  the  United  States," 
while  others  find  it  desirable  to  take  advantage  of  the  longer  credit 
terms  of  European  houses.  The  European  exporter,  as  a  rule, 
draws  drafts  against  acceptance,  which  he  in  turn  discounts  with 
his  bankers.  However,  a  considerable  volume  of  business  is  trans- 
acted on  open  account  with  periodical  settlements,  interest  at  6 
per  cent,  usually  being  charged  for  the  time  that  the  account 
is  open. 

Why  Dealers  in  Latin  America  Require  Time. — An  analysis  of 
the  commerce  of  Latin  American  countries  makes  it  possible  to 
account  for  the  frequent  requests  for  longer  terms  than  are  cus- 
tomary in  the  United  States.  In  practically  every  country  and 
on  almost  all  articles  duties  must  be  paid,  and  sometimes  the 
latter,  together  with  the  freight  charges,  represent  a  cash  outlay 
equaling  50  per  cent,  to  70  per  cent,  of  the  value  of  the  goods.  Be- 
cause of  conditions,  the  stocks  cannot  be  delivered  as  often  as  in 
the  United  States  and  frequently,  in  order  to  justify  direct  im- 
portations, larger  quantities  must  be  purchased  tlian  are  actually 
needed  for  immediate  requirements.  The  purchasing  power  of  the 
people  per  capita  is  considerably  smaller  than  in  the  United  States. 

The  Effect  of  Agriculture. — In  almost  all  of  the  countries  the 
credit  system  has  grown  out  of  conditions  which  the  importers 
deplore  but  for  which  they  are  not  responsible.     The  Latin  Amer- 


CREDITS  IN  LATIN  AMERICA  203 

lean  republics  are  essentially  argicultural  and  will  continue  to 
remain  so  indefinitely.  The  crops  vary  according  to  the  countries 
but  are  largely  seasonal.  The  importers  frequently,  like  the  gen- 
eral merchants  in  agricultural  communities  in  the  United  States, 
must  finance  the  natives,  and  are  compelled  to  wait  until  returns 
can  be  had  from  crops.  The  lack  of  sufficient  capital  for  local 
needs  increases  the  necessity  for  credit.  This  does  not  apply  to 
every  concern,  but  even  in  the  case  of  many  business  houses  of 
high  standing  and  large  affairs  a  long  credit  is  desirable  because 
of  the  extent  of  business  done. 

Infrequency  of  Bankruptcy, — The  financial  solidity  which  is  a 
Latin  American  characteristic  is  naturally  due  to  the  conservatism 
of  the  business  men.  The  commercial  mortality  is  much  lower 
in  the  Latin  American  countries  than  in  the  ITnited  States. 

Although  failures  occur,  particularly  in  the  rapidly  advancing 
communities  such  as  Buenos  Aires,  Rio  de  Janeiro,  Santiago,  and 
other  large  cities,  they  nevertheless  are  not  more  disastrous  than 
failures  in  the  United  States.  In  almost  all  places,  failure  is 
regarded  as  a  serious  reflection  upon  the  character  and  good  faith 
of  the  merchant,  and  every  effort  is  made  to  avoid  it. 

Percentage  of  Losses  by  Bad  Debts. — American  manufacturers 
who  have  intelligently  sought  Latin  American  business  have  proved 
through  their  experience  that  by  observing  caution  and  by  pur- 
suing the  same  methods  as  in  the  extension  of  credit  at  home, 
their  losses  in  Latin  America  have  been  practically  nil.  However, 
under  no  consideration  should  shipments  be  made  without  a  thor- 
ough investigation — because  of  the  swindles  often  attempted. 

How  Credit  Information  May  Be  Obtained. — There  are  various 
means  of  obtaining  credit  information  on  houses  in  Latin  America. 
Following  are  the  principal  means: 

1.  Mercantile  agencies;  R.  G.  Dun  &  Co.,  and  Bradstreet's. 

2.  Business  organizations,  such  as  the  National  Association  of 
Manufacturers,  New  York ;  the  Philadelphia  Commercial  Museum, 
of  Philadelphia,  Penn. ;  the  American  Manufacturers'  Export  As- 
sociation, New  York. 

3.  Foreign  departments  of  American  banks  and  branches  of 
foreign  banks  in  New  York  City. 

4.  Banks  located  in  the  city  or  territory  where  the  order  orig- 
inates. 


204  EXPOETING  TO  LATIN  AMERICA 

5.  American  or  foreign  concerns  with  which  the  Latin  Amer- 
ican importer  has  done  business  and  whose  names  are  given  by 
him  as  references  or  are  obtained  by  traveling  representatives. 

6.  Traveling  representatives  or  local  agents  are  often  able  to 
obtain  at  first  hand  the  most  reliable  information  upon  which  to 
base  the  extension  of  credit. 

7.  Trade  papers,  export  journals,  etc.,  as  a  part  of  their  service 
volunteer  to  obtain  credit  reports  for  their  advertisers. 

8.  Exchange  Bureaus.  Many  manufacturers  now  use  exchange 
service  such  as  the  Credit  Clearing  House  and  the  National  Asso- 
ciation of  Credit  Men.  The  latter  organization  conducts  a  foreign 
trade  bureau  similar  to  the  domestic  service. 

The  Service  of  Mercantile  Ag^encies. — The  credit  reports  fur- 
nished by  the  two  leading  agencies  of  the  United  States  on  Latin 
American  houses  are  almost  invariably  equal  to  those  on  domestic 
firms.  Branch  offices  are  maintained  in  the  principal  capitals, 
while  agents  and  commercial  correspondents  in  almost  all  com- 
mercial centers  make  it  possible  quickly  to  obtain  detailed  reports 
where  none  are  on  hand.  The  files  of  these  institutions  are  being 
constantly  enlarged  and  the  cost  of  the  reports  has  steadily  de- 
creased while  the  efficiency  has  increased.  The  reports  on  Latin 
American  firms  cost  more  than  those  on  domestic  houses. 

The  Reports  of  Business  Organizations. — Membership  in  com- 
mercial organizations  such  as  the  National  xVssociation  of  Manu- 
facturers, the  Philadelphia  Commercial  Museum,  etc.,  entitle  mem- 
bers to  a  certain  number  of  credit  reports.  When  the  number  is 
exhausted  an  extra  charge  is  made.  The  information  desired  is 
frequently  on  file,  but  wlicn  not,  it  is  obtained  by  correspondence 
with  bankers,  mcrcliants.  and  business  houses  in  general. 

Banks  in  New  York  City. — ]\Ianiifacturers  located  in  interior 
cities  may  ask  their  local  banks  to  obtain  for  them  reports  on 
merchants  in  Latin  America.  These  records  are  supplied  by  the 
foreign  departments  of  banks  located  in  New  York,  which  in  turn 
obtain  tbem  from  their  correspondents. 

Certain  banks  whicli  make  a  specialty  of  Latin  American  busi- 
ness maintain  very  complete  files  and  are  constantly  increasing  the 
number  thereof.  A  list  of  banks  which  are  particularly  interested 
in  tliis  snl)joct  will  be  found  on  page  504. 

Banks  in  Latin  America. — Direct  information  may  be  obtained 


CREDITS  IN  LATIN  AMERICA  205 

by  writing  to  banks  located  in  the  city  where  the  merchant  or 
importer  who  sends  the  order  is  in  business.  Such  a  report  is 
usually  reliable  and  the  mere  statement  of  a  bank  that  a  merchant 
is  worthy  of  credit  is  sufficient,  even  though  no  details  are  given. 
In  this  connection  there  should  be  noted  a  very  marked  character- 
istic of  credit  reports  from  Latin  America.  Replies  of  bankers 
are  often  laconic  and  confined  to  a  bare  statement  that  the  person 
concerning  whom  the  inquiry  is  made  is  worthy  or  unworthy  of 
confidence.  Because  such  reports  are,  as  a  rule,  honest,  they  are 
as  valuable  as  more  extended  information. 

When  making  inquiry  of  a  foreign  bank  an  international  post 
office  coupon  should  be  inclosed,  and  in  the  event  that  a  charge  is 
made  for  the  report  (which  is  not  always  the  case),  it  should  be 
promptly  remitted  by  international  post  office  money  order. 

American  or  Foreign  References. — Naturally  in  transacting 
business  with  Latin  x\merican  merchants  references  should  be  ex- 
acted. The  names  of  firms  with  whom  business  is  done  are  espe- 
cially desirable. 

Inquiries  may  be  addressed  to  such  houses,  but  information 
should  not  be  asked  of  a  competing  manufacturer.  Letters  to 
foreign  manufacturers  should  invariably  be  accompanied  by  inter- 
national post  office  coupon  to  cover  the  reply,  as  United  States 
stamps  are  useless. 

An  Interchange  of  References. — It  is  of  great  value  to  obtain  an 
interchange  of  references  on  merchants  located  in  Latin  America, 
as  is  now  the  case  in  the  United  States.  This  work  is  done  by  the 
National  Association  of  Credit  Men,  through  its  branch  offices. 

How  Foreign  Credit  Reports  Differ  from  Domestic. — The  credit 
report  on  the  buyer  in  Latin  America  differs  from  that  on  the  do- 
mestic merchant  chiefly  in  that  it  is  lacking  in  details.  This  is  the 
result  of  the  system  that  has  obtained  for  many  years,  and  must 
be  taken  into  consideration.  A  report  merely  to  the  effect  that 
the  firm  concerning  whom  inquiry  is  made  is  reliable  and  wealthy 
is  sufficient  to  justify  a  reasonable  credit.  Reports  may  be  ex- 
tremely terse  but  nevertheless  dependable. 

The  Necessity  of  Obtaining  Many  Reports. — It  is  equally  as 
important,  in  passing  on  credits  on  merchants  located  in  Latin 
America,  that  all  available  information  shoidd  be  obtained,  and 
particularly  where  a  large  sum  is  involved.     The  various  means 


206  EXPORTING  TO  LATIN  AMERICA 

suggested  should  be  utilized,  and  the  credit  reports  should  be 
renewed  from  time  to  time.  Conditions  in  Latin  America,  par- 
ticularly since  the  outbreak  of  the  European  War,  have  been  more 
unfavorable  than  in  recent  years  and  it  is  therefore  essential  that 
records  be  kept  up  to  date. 

The  Advantage  of  Open  Credit  Dealing. — Many  of  the  most  suc- 
cessful American  manufacturers  who  have  established  business  in 
Latin  America  have  done  so  by  selling  on  open  account.  By  this 
is  meant  the  custom  of  granting  credit  to  firms  of  recognized 
standing  on  the  same  conditions  on  which  credit  is  extended  to 
such  firms  in  the  United  States. 

When  and  How  Open  Credit  Is  Extended. — Credit  is  only 
granted  where  a  thorough  investigation  has  resulted  in  definite 
knowledge  of  the  unquestionable  standing  of  the  concern.  It  is 
based  on  absolutely  reliable  credit  information  and  on  the  experi- 
ence of  other  houses.  Where  open  credit  is  extended  to  firms  of 
recognized  standing,  the  experience  of  manufacturers  is  gener- 
ally pleasant,  as  most  responsible  Latin  American  concerns  are 
disposed  to  fulfill  to  the  letter  any  agreements  that  they  make. 
The  basis  of  settlement  of  accounts  is  definitely  agreed  upon,  and 
the  invoice  must  be  paid  within  a  fixed  term,  sixty,  ninety,  one  hun- 
dred and  twenty,  or  one  hundred  and  fifty  days  as  determined.  At 
the  outset  it  must.be  definitely  agreed  what  allowance,  if  any,  is 
to  be  made  for  the  arrival  at  the  destination  of  papers  and  mer- 
chandise, and  likewise  for  the  time  the  remittance  is  in  the  mails. 

Instructions  to  Salesmen  Regarding  Credits. — American  travel- 
ers may  profitably  follow  the  custom  of  European  traveling  sales- 
men, who  invariably  make  preliminary  visits  to  the  merchants 
whom  they  desire  to  sell,  and  then  to  banks  or  banking  houses  in 
order  to  obtain  information  relative  to  the  standing  of  the  mer- 
chants. Salesmen  who  are  fortified  with  the  proper  letters  of 
introduction  are  enabled  to  obtain  information  on  which  to  base 
their  efforts,  and  consequently  do  not  spend  their  time  obtaining 
orders  which  will  be  declined  later.  The  methods  of  European 
commission  houses  and  importers  in  the  matter  of  obtaining  in- 
formation are  practically  identical  with  those  followed  by  Ameri- 
can houses,  with  the  exception  that  European  traveling  salesmen 
are  a  far  more  important  factor  in  determining  credits  than 
American  salesmen.    This  is  because  of  the  European  belief  that 


CREDITS  IX  LATIN  AMERICA  207 

a  man  on  the  ground  is  in  a  position  to  investigate  the  credit 
standing  of  a  dealer  much  more  quickly  and  thoroughly  than  can 
be  done  by  mail.  The  losses  of  European  houses  as  a  result  are 
insignificant. 

Time  Needed  for  Gathering  Information. — The  American  manu- 
facturer, particularly  when  not  experienced  in  Latin  American 
trade,  is  likely  to  expect  his  travelers  to  cover  the  ground  too 
quickly.  In  the  long  run,  a  greater  volume  of  business  can  be  ob- 
tained, and  far  more  satisfactorily,  if  enough  time  is  spent  in  each 
place.  Credit  and  general  information  gathered  by  the  salesmen  in 
this  manner  can  be  used  in  the  future  in  the  development  of  busi- 
ness. Furthermore,  by  taking  sufficient  time  to  obtain  full  data 
regarding  the  best  methods  of  packing,  custom  house  requirements, 
etc.,  they  are  enabled  far  more  intelligently  to  serve  their  houses 
than  otherwise. 

Extending  Credit  to  Small  Dealers. — Great  care  should  be  exer- 
cised in  granting  credit  to  small  merchants  from  whom  salesmen 
frequently  send  orders  witliout  proper  investigation.  Unscrupulous 
dealers  seek  to  take  advantage  of  American  exporters,  believing 
that  because  orders  are  small  the  credit  will  not  be  withheld.  When 
shipments  from  such  firms  arrive,  they  are  rejected  and  in  many 
instances,  when  they  cannot  be  successfully  placed  with  other  dealers 
but  have  to  be  sold  at  auction,  the  unscrupulous  importers  them- 
selves buy  the  shipments.  Because  of  the  difficulties  surrounding 
the  collection  of  small  amounts,  particularly  when  it  is  necessary 
to  resort  to  legal  means,  orders  from  firms  of  doubtful  standing 
should  be  refused  because,  though  small,  the  risk  is  even  greater 
than  in  the  case  of  large  orders  from  known  concerns. 

Unknown  Firms  Should  Be  Avoided. — Many  salesmen  also  make 
the  mistake  of  obtaining  orders  from  individuals  who  have  no 
credit  standing  and  about  whom  it  is  difficult  to  obtain  informa- 
tion. The  American  manufacturer  should  particularly  caution 
his  representative  in  this  respect,  as  it  is  extremely  difficult  to  col- 
lect such  accounts  in  the  event  tliat  payments  are  refused. 

Credits  Extended  to  South  American  Governments. — American 
manufacturers  sometimes  lose  valuable  opportunities  for  the  sale 
of  their  products  to  the  governments  of  Latin  America.  In  the  case 
of  most  of  the  republics,  when  sales  are  made  to  the  governments, 
settlements  are  arranged  as  promptly  as  in  the  case  of  orders 


208  EXPORTING  TO  LATIN  AMEEICA 

obtained  from  the  American  government.  It  is  unfair  to  deal  in- 
discriminately and  to  adopt  a  strict  rule  against  credit  transactions 
with  those  states.  Before  cash  is  exacted  every  effort  should  be 
made  to  ascertain  exact  conditions  that  there  may  be  a  sound  basis 
for  refusal  of  credit,  as  countries  like  Argentina,  Brazil,  etc.,  have 
the  very  highest  credit  standing. 

Methods  of  Collecting  Open  Accounts. — It  is  customary,  in  ship- 
ping goods  anywhere,  definitely  to  fix  a  date  of  payment.  Re- 
sponsible houses  in  Latin  America,  jealous  of  their  credit  stand- 
ing, endeavor,  to  the  fullest  extent  of  their  ability,  to  meet  these 
conditions.     Payments  are  made  in  any  one  of  the  following  ways : 

1.  By  remitting  direct  to  the  manufacturer  draft  on  New  York 
or  London.  If  the  terms  agreed  upon  are  ninety  days  from'  in- 
voice it  should  be  definitely  stated  whether  the  payment  is  to  be 
made  by  the  merchant  at  the  expiration  of  that  period  or  whether 
the  remittance  is  to  be  in  the  hands  of  the  manufacturer  within 
ninety  days  from  the  time  of  shipment. 

2.  It  may  be  agreed  that  the  manufacturer  shall  make  a  draft 
to  be  presented  to  the  merchant  for  acceptance.  This  draft  may 
be  either  at  sight  or  at  a  definite  number  of  days  sight  and  must 
be  honored  at  maturity.  In  that  event  the  draft  must  be  mailed 
to  the  collecting  bank  a  sufficiently  long  time  in  advance  to  permit 
of  its  being  collected  and  proceeds  remitted. 

3.  It  may  be  agreed  that  the  manufacturer  shall  make  draft 
at  the  time  shipment  is  forwarded,  attaching  thereto  the  bill  of 
lading,  which  shall  be  delivered  to  the  consignee  upon  acceptance. 
Maturity  is  thus  definitely  fixed,  and  collection  is  made  by  the  bank 
which  retains  the  draft  or  to  which  it  is  returned  for  collection  at 
the  proper  time. 

The  Collection  of  Open  Accounts. — When  shipments  are  made 
without  drafts,  and  with  no  definite  understanding  regarding  dates 
of  payment  or  the  manner  of  settlement,  the  problems  of  the  manu- 
facturer become  more  complex.  While  responsible  business  houses 
in  Latin  America  regard  their  obligations  with  great  seriousness, 
nevertheless  the  same  difficulties  confront  the  manufacturer  in  col- 
lecting his  bills  as  are  the  case  in  the  United  States.  It  is  ex- 
tremely important  that  this  question  be  approached  from  the 
proper  standpoint,  as  accounts  which  have  cost  a  great  expendi- 
ture of  time  and  money  to  open  may  easily  be  lost.    The  following 


CREDITS  IN  LATIN  AMERICA  209 

suggestions  relative  to  this  phase  of  the  export  problem  may  prove 
helpful : 

1.  Maturity  Should  Be  Definitely  Fixed.  The  consignee  should 
be  tactfully  informed  at  time  of  shipment  how  remittance  is  ex- 
pected and  when  payment  should  be  in  the  hands  of  the  manu- 
facturer. If  the  terms  are  ninety  days,  the  consignee  should  know 
whether  this  means  that  he  is  to  make  remittance  ninety  days 
from  date  of  invoice,  in  which  event  (from  the  more  remote  points 
in  South  America)  at  least  four  weeks  must  be  allowed  by  the 
manufacturer  to  receive  the  draft. 

2.  The  Sending  of  Statements.  Wlien  statements  are  mailed 
they  should  be  accompanied  by  polite,  tactful  letters.  The  average 
Latin  American  merchant  is  extremely  sensitive  and  if  such  let- 
ters are  not  properly  couched  they  will  act  as  a  cause  of  ex- 
traordinary irritation.  If  the  manufacturer  is  especially  desirous 
of  increasing  his  business,  he  should  invariably  make  the  letter 
serve  as  an  invitation  for  further  orders.  If  the  terms  agreed 
upon,  for  instance  ninety  days,  mean  that  remittance  must  be 
made  at  the  end  of  that  time  a  statement  may  be  mailed  sufficiently 
far  in  advance  to  reach  the  customer  at  maturity. 

3.  First  Steps  in  Collections.  If  an  account  becomes  overdue 
and  sufficient  time  has  elapsed  for  the  remittance  to  have  been  re- 
ceived, another  reminder,  also  polite,  may  be  sent.  The  im- 
portance of  waiting  a  sufficient  length  of  time  for  replies  to  be 
received  to  letters  of  this  nature  cannot  be  overestimated.  Many 
manufacturers  fail  to  take  into  consideration  the  time  that  is  re- 
quired, and  by  following  the  routine  of  American  collection  methods 
a  series  of  three  or  four  letters,  many  of  them  of  a  very  harsh 
nature,  are  often  received  by  the  customers  (sometimes  on  the 
same  steamer)  before  they  have  time  to  reply.  This  is  a  most 
vicious  failing  of  many  manufacturers  and  a  certain  means  of 
nullifying  intelligent  work  on  the  part  of  the  sales  department. 

4.  Attitude  in  Collections.  The  business  man  who  is  serious  in 
his  efforts  to  establish  a  business  in  Latin  America  must  exercise 
the  utmost  patience.  In  no  phase  of  the  business  is  this  more 
essential  than  in  the  matter  of  correspondence.  A  willingness  to 
overlook  the  delays  incident  to  this  feature  will  be  of  the  greatest 
value  in  creating  trade.  If,  however,  an  account  has  become  con- 
siderably overdue  and  there  is  no  immediate  prospect  of  collec- 


210  EXPOETING  TO  LATIX  AMERICA 

tion,  a  draft  may  be  made.  This  can  be  forwarded  either  througk 
the  manufacturer's  local  bank  for  collection,  or  may  be  sent  by 
the  manufacturer  to  a  bank  in  the  city  where  the  customer  in  Latin 
America  is  established,  or  to  the  nearest  available  institution. 
Private  drafts  of  this  nature  often  serve  to  expedite  collections. 
They  must  invariably  be  accompanied  by  letters  of  the  right  sort 
and  unless  properly  written  from  the  standpoint  of  the  Latin 
American  they  may  destroy  chances  for  further  business. 

5.  Collection  of  Accounts  Long  Overdue.  As  in  the  case  of 
domestic  business  and  despite  all  precautions,  some  accounts  in 
Latin  America  become  so  long  overdue  that  harsh  measures  must 
be  resorted  to  that  collection  may  be  enforced.  The  taking  of  legal 
action  (except  in  the  most  extreme  instances)  is  strongly  dis- 
couraged. This  is  simply  because  the  procedure  in  Latin  American 
courts  is  both  expensive  and  exceedingly  protracted.  There  are, 
however,  means  of  collecting  accounts  from  concerns  without  legal 
action.  When  it  is  desired  to  make  collections  of  claims,  there  are 
several  organizations  whose  experience,  developed  as  a  result  of 
many  years'  business  dealings  in  Latin  America,  is  very  valuable 
and  may  be  taken  advantage  of.  The  Philadelphia  Commercial 
Museum,  for  the  benefit  of  its  members,  handles  such  claims.  The 
foreign  department  maintained  by  the  National  Association  of 
Manufacturers  of  New  York  likewise  undertakes  the  collection 
of  such  accounts. 

Work  of  Collection  Agents. — The  American  Manufacturers'  Ex- 
port Association  is  still  another  means.  It  is  not  unreasonable  to 
expect  that  as  a  result  of  its  effective  dealing  Avith  this  problem  in 
the  United  States,  the  National  Association  of  Credit  Men,  through 
its  bureaus,  will  extend  its  valuable  work  to  Latin  America  and 
serve  its  members  as  successfully  in  that  field  as  it  has  in  the 
United  States.  The  commercial  agency  of  R.  G.  Dun  &  Company 
also  maintains  a  collection  bureau.  In  the  large  Latin  American 
cities  are  organizations  similar  to  the  collection  agencies  in  the 
LTnited  States,  the  names  of  which  arc  easily  obtainable.  The 
cost  of  collections  through  such  organizations  and  of  lawyers  is 
somewhat  high,  being  usually  not  less  than  15  per  cent,  and  fre- 
quently running  even  higher.  This  is  due  to  the  fact  that  the 
correspondents  (usually  lawyers)  in  Latin  America  exact  a  higher 
fee  than  here  and  often  insist  upon  a  retainer  before  undertaking 


CREDITS  IN  LATIX  AMERICA  211 

any  collections.  It  is  highly  important  that  the  credit  man  should 
exhaust  every  possible  means  of  making  collection  before  placing 
his  accounts  in  the  hands  of  a  collection  agency,  and  where  delay 
is  apparently  caused  by  local  temporary  embarrassment  or  as  the 
result  of  the  fluctuation  of  the  rate  of  exchange  it  will  prove  far 
more  advantageous  to  wait  a  reasonable  length  of  time  than  to 
make  collection  through  an  agency. 

How  Legal  Action  May  Be  Taken. — It  may  be  laid  down  as  a 
general  principle  that  the  American  manufacturer  is  at  a  dis- 
advantage in  bringing  suit  in  Latin  American  courts.  The  costs 
as  a  rule  are  excessive,  the  time  involved  is  considerable,  delays  are 
frequent,  and  altogether  it  is  far  more  difficult  to  obtain  results 
by  legal  means  than  in  the  United  States.  If  such  action  is  in- 
evitable, only  the  very  best  lawyers  should  be  consulted,  and  claims 
should  not  be  placed  with  foreign  attorneys  unless  their  reputation 
and  responsibility  has  been  looked  into.  To  safeguard  his  interest 
in  that  direction  a  manufacturer  forwarding  a  claim  requiring  legal 
attention  should  do  so  through  a  reliable  bank,  requesting  that 
the  matter  be  handed  over  to  an  attorney  of  recognized  standing. 
Where  the  name  of  a  lawyer  is  not  available  for  the  manufacturer, 
this  will  quickly  result  in  his  claim  reaching  the  hands  of  a 
reputable   attorney. 

The  Importance  of  Adjusting  Claims. — In  building  a  business 
with  Latin  America,  it  is  inevitable  that  claims  of  various  sorts 
should  arise.  Notwithstanding  all  precautions  that  are  taken,  mis- 
understandings and  claims,  both  fair  and  unfair,  will  be  made.  It 
frequently  happens  that  the  customer  files  a  claim  for  the  purpose 
of  obtaining  additional  time  and  thus  delaying  payment,  or  in 
order  to  avoid  payment  indefinitely. 

In  handling  the  adjustment  of  claims,  the  American  merchants 
should  show  a  spirit  of  the  utmost  liberality.  Where  the  exporter  is 
himself  responsible  because  of  a  failure  to  follow  certain  directions, 
he  should  not  quibble  but  allow  proper  credit.  Much  can  be  done 
even  with  a  dissatisfied  customer  in  Latin  America  by  the  proper 
sort  of  correspondence.  When  the  manufacturer  proves  to  his 
customer  his  willingness  to  do  what  is  right  by  being  profuse  in 
his  apologies  and  showijig  great  fairness,  he  can  ofttimes  strengthen 
his  claim  to  a  share  of  the  dealer's  patronage  and  be  more  firmly 
intrenched  in  the  buyer's  favor  than  if  no  claim  had  been  made. 


213  EXPORTING  TO  LATIN  AMERICA 

A  shortsighted  policy  in  the  adjustment  of  claims  with  Latin  Amer- 
ican merchants  is  found  to  result  disastrously.  In  the  adjustment 
of  claims  the  American  manufacturer  may  use  the  good  offices 
of  correspondents  and  if  his  relations  with  banking  institutions  have 
become  particularly  close  the  aid  of  such  banks  may  also  be  in- 
voked. If  it  is  manifest  that  claims  are  made  for  the  purpose  of 
deceit,  fraud,  or  unfair  advantage,  the  manufacturer  has  the  op- 
portunity of  proceeding  to  collect  through  any  of  the  means  ordi- 
narily open  for  the  adjustment  of  such  accounts. 

Means  of  Obtaining  More  Detailed  Information. — There  are  sev- 
eral valuable  publications  which  treat  very  exhaustively  the  foreign 
credit  problem.    These  are  listed  on  page  493  of  the  Appendix. 


CHAPTER  XIII 

BANKING     SITUATION.        FINANCIAL     CONDITIONS     IN     LATIN 
AMERICA.      STERLING    AND    DOLLAR    EXCHANGE 

Introduction. — The  topic  of  financial  relations  with  Latin 
American  countries  has  received  much  attention  from  business 
men.  The  lack  of  adequate  banking  facilities  between  the  United 
States  and  the  southern  republics  has  often  been  urged  as  a 
drawback  to  more  intimate  relations,  but  so  far  as  the  average 
transaction  is  concerned,  this  may  be  said  to  be  without  founda- 
tion. The  business  man  whose  products  are  salable  in  Latin  Amer- 
ica has  rarely  been  at  a  loss  to  obtain  payment  therefor  because 
of  lack  of  banking  facilities.  On  the  other  hand,  from  a  broader 
aspect,  the  extension  of  the  American  banking  system  to  the  Latin 
American  countries  was  obviously  important  for  greater  conven- 
ience in  financial  transactions. 

Financial  Conditions  in  General. — The  financial  conditions  in 
the  twenty  Latin  American  republics  differ  almost  as  widely  as 
their  climates.  Some  of  the  republics,  as  indicated  in  the  first 
chapter,  enjoy  excellent  financial  conditions  while  in  some  of  those 
less  developed  the  situation  is  unsatisfactory.  As  a  result,  it  is 
necessary  to  differentiate  and  to  analyze  the  conditions  peculiar 
to  each  of  the  countries.  Such  an  analysis  must  concern  itself 
not  only  with  the  currency,  but  also  with  the  local  banks  and  the 
banking  institutions  of  other  nations. 

Character  of  the  Currency. — The  student  of  economic  condi- 
tions in  Latin  America  will  quickly  realize  that  in  many  of  the 
countries  a  drawback  to  their  development  is  the  currency  system. 
Some  of  the  republics,  like  Costa  Eica  and  ITruguay,  are  on  a 
sound  financial  basis,  but  in  others  the  currency,  which  is  paper, 
is  greatly  debased.  It  is  interesting,  in  this  connection,  to  note 
that  in  those  countries  with  which  our  relations  are  particularly 
close,  or  where  American  protectorates,  nominal  or  actual,  have 
existed,    American   money   is   used    and    circulates    very   widely. 

213 


214 


EXPORTING  TO  LATIN  AMERICA 


Among  such  countries  are  Cuba,  Haiti,  Nicaragua,  Panama,  and 
Santo  Domingo. 

The  Difference  of  Monetary  Systems. — In  general  there  are  four 
kinds  of  currency :  viz.,  "metallic,"  "representative,"  "asset"  and 
"fiat."  These  are  based  on  the  four  different  monetary  systems 
which  are  in  use  in  various  republics.  The  gold  standard  has  been 
adopted  by  Bolivia,  Cuba,  Costa  Rica,  Ecuador,  Haiti,  Nicaragua, 
Peru,  Santo  Domingo,  Uruguay  and  Venezuela;  in  these  countries 
the  sole  legal  tender  is  gold.  The  gold  exchange  standard  is  used 
by  Argentina,  Brazil,  and  Panama ;  in  these  republics  the  legal 
tender  is  gold  as  well  as  other  forms  of  money.  The  silver  standard 
is  in  use  by  Honduras  and  Salvador  and  in  these  two  countries 
silver  is  legal  tender.  Inconvertible  paper  is  used  by  Chile,  Colom- 
bia, Guatemala,  and  Paraguay  and  its  currency  values  change 
greatly  from  day  to  day. 

The  Cause  of  the  Fluctuations. — The  monetary  values,  even  in 
those  countries  with  a  sound  system,  have  been  disturbed  by  the 
European  War.  The  exact  causes  need  not  be  discussed  here.  On 
the  other  hand,  it  should  be  pointed  out  that  in  almost  all  of 
the  republics,  and  especially  in  the  four  last  mentioned,  the  fluctua- 
tions are  very  wide.  The  principal  factors  which  effect  these 
changes  are:  the  balance  of  trade;  the  demand  for  exchange  on 
London  or  other  nations;  speculation  (which  is  important);  and 
general  business  conditions.  In  consequence  of  fluctuations,  mer- 
chants sometimes  delay  remittances  while  waiting  to  take  advan- 
tage of  more  favorable  rates. 

The  Latin  American  "Units  of  Value. — The  following  is  a  list 
of  the  units  of  value  in  Latin  America.  The  face  value  is  subject 
to  change  for  the  reason  given  in  the  preceding  paragraph,  but  will 
serve  to  illustrate  the  point: 


Country 


Argentina. . 

Bolivia 

Brazil 

Chile....... 

Colombia. . . 
Costa  Rica. 

Cuba 

Ecuador 

Guatemala.. 
Haiti 


Ukit 


Peso 

Boliviano  . 

Milreia 

Peso 

Peso 

Colon 

Peso 

Sucre 

Peso 

Gourde . .  . 


Face  Value 

42-44  cents 
39  cents 
33-}4  cents 
15-35  cents 
01  cent 
4f>-V2  cents 
1  Dollar 
487  cents 
02-'/^  -5  cents 
96-14  cents 


Country 


Honduras 

Mexico 

Nicaragua 

Panama 

Paraguay 

Peru 

Salvador 

Santo  Domingo. 

Uruguay  

Venezuela 


Unit 


Peso 

Peso 

Cordoba . 
Balboa. . . 

Peso 

Sole 

Peso 

Dollar. .  . 

Peso 

Bolivar . . 


Face  Value 

39  cents 

(Indefinite) 

1  Dollar 

50  cents 

02-^-5  cents 

48  cents 

44  cents 

$1.00 

1.034  Dollars 

194  cents 


The   Domestic   or  Local   Banks. — The  banking  situation   must 
be  studied  in  connection  with  the  currency  systems,  being  inter- 


FINANCIAL  CONDITIONS  215 

dependent.  In  all  of  the  republics  are  found  banks  dominated  by 
local  capitalists,  sometimes  entirely  controlled  or  owned  by  the 
governments  or  closely  identified  therewith.  There  are  numerous 
private  banking  institutions  and  as  a  general  rule  they  have  been 
extremely  profitable  with  comparatively  few  failures.  In  Brazil  one 
of  the  chief  institutions  is  the  Banco  do  Brazil,  which  is  a  semi- 
governmental  institution,  while  in  Bolivia  the  Banco  de  Bolivia  is 
of  much  the  same  character.  In  Cuba,  Costa  Rica,  and  other 
republics  there  are  numerous  private  banking  institutions  with 
large  capital.  These  institutions  are  described  in  detail  in  reports 
which  are  listed  on  page  493. 

Dollar  Exchang-e. — The  substitution  of  "dollar  exchange"  for 
the  "bill  on  London"  has  been  suggested  as  the  most  important 
step  in  the  plan  to  secure  proper  recognition  for  American  com- 
merce in  Latin  American  countries.  It  is  universally  conceded 
that  the  establishment  of  American  banks  will  be  of  enormous  help 
to  American  commerce  both  in  their  direct  and  indirect  benefit, 
although  business  of  great  volume  has  been  already  established 
without  such  help.  It  is  reasonable  to  assume,  therefore,  that 
the  growth  of  American  exports  would  be  more  rapid  if  there  were 
more  American  banks  in  the  southern  republics.  The  plan  of 
establishing  branch  banks  is  already  being  widely  attempted. 

Influence  of  Foreign  Banks. — The  astonishing  development  of 
European  commerce  in  the  Latin  American  countries  has  in  a 
large  measure  been  due  to  the  assistance  furnished  to  the  business 
men  of  those  nations  by  their  bankers.  This  aid  has  not  alone 
taken  the  form  of  the  discounting  of  drafts  covering  shipments  to 
Latin  America  but  also  the  financing  of  projects  of  almost  every 
conceivable  nature.  Through  the  branch  banks  established  through- 
out Latin  America,  capital  was  supplied  to  industrial  concerns, 
railroads,  electric  light  and  power  plants,  irrigation  and  water 
power  projects,  mines,  plantations,  etc.  When  the  capital  for  these 
enterprises  was  furnished  by  the  European  banks  the  purchase 
of  materials  from  their  own  manufacturers  was  naturally  insisted 
upon. 

Foreign  Banks  in  Latin  America. — As  a  direct  result  of  this 
policy  the  most  commanding  influence  in  Latin  American  finances 
is  the  banks  of  England,  Germany,  France,  Spain  and  Italy.  Some 
of  the  other  nations,  notably  Switzerland  and  Portugal,  are  also 


216  EXPORTING  TO  LATIN  AMERICA 

represented.  In  addition  to  the  foreign  banks  there  are  very  im- 
portant native  financial  institutions  dominated  by  the  capital  of 
their  nations.  Thus  the  most  important  bank  of  South  America 
is  the  Banco  de  La  Nacion  Argentina,  with  a  capital  of  $100,- 
000,000  currency  which  with  a  reserve  fund  amounts  to  over 
$122,000,000.  In  Brazil  the  largest  bank  has  a  capital  of 
$100,000,000. 

European  Doimnation  of  Finance. — Students  of  Latin  Amer- 
ican financial  conditions  will  immediately  be  impressed  with  the 
preponderating  influence  of  Great  Britain  in  the  settlement  of 
international  debts.  By  far  the  greatest  number  of  drafts  in  set- 
tlement of  purchases  of  American  goods  are  drawn  in  pounds 
sterling,  as  are  also  bills  of  exchange  drawn  by  American  shippers 
on  their  customers. 

For  this  reason  it  has  long  been  realized  that  if  the  business 
interests  of  the  United  States  in  Latin  America  were  to  have 
adequate  recognition,  some  plan  would  have  to  be  found  of  re- 
placing sterling  exchange,  recognized  as  the  most  stable  instru- 
ment of  international  banking.  The  center  of  the  world's  financial 
operations  for  hundreds  of  years  has  been  London  and  commercial 
transactions  have  invariably  been  calculated  on  the  basis'  of  the 
pound.  Despite  the  desirability  of  furthering  the  use  of  the  dollar 
exchange  the  fight  will  be  a  difficult  one  for  the  reason  that  it 
has  always  been  more  profitable  for  Latin  Americans  to  purchase 
sterling  exchange  than  bills  on  New  York. 

The  Bill  on  London. — That  the  importance  of  the  bill  of  ex- 
change on  London  has  not  been  exaggerated  is  demonstrated  by 
an  article  which  appeared  in  the  London  Economist.  The  follow- 
ing is  a  quotation  therefrom : 

The  Bill  on  London  is  the  currency  of  the  World.  It  is  the  only 
currency  of  the  world.  It  represents  gold,  but  is  greater  than  gold, 
and  is  preferred  to  gold  because  transferrable  with  greater  rapidity, 
less  risk  and  loss.  It  has  therefore  become  the  universal  world  cur- 
rency which,  and  which  alone,  the  producer  and  handler  and  all 
nations  will  accept  as  wholly  satisfactory  and  sufficient.  There 
is  nothing  like  it  elsewhere.  No  such  function  is  performed  by  a  bill 
on  Paris,  or  Berlin  or  on  New  York. 

The  foreign  exchange  brokers  of  London  have  accepted  drafts  to 


FINANCIAL  CONDITIONS  217 

such  an  extent  that  these  bills  were  always  in  demand.  For  this 
reason  even  German  and  French  banks  have  established  branches 
in  London  for  the  purpose  of  obtaining  a  share  of  the  business. 
Within  the  last  ten  or  fifteen  years  the  Germans  in  particular  have 
been  making  strenuous  efforts  to  replace  the  bill  on  London  with 
their  own  drafts,  and  the  establishment  of  their  branch  banks  in 
the  principal  Latin  American  cities  was  a  part  of  this  plan. 

New  York  Drafts  at  Discount. — The  sale  of  London  bills  of 
exchange  has  always  proved  advantageous  whereas  bills  on  New 
York  usually  brought  from  1  to  1 3^2  per  cent.  less.  The  branches 
of  the  foreign  exchange  houses  in  New  York  City  have  been  in 
a  position  to  discount  the  drafts  of  American  exporters  on  South 
America.  The  export  houses  of  New  York  which  have  been  forced 
to  depend  upon  European  bankers  for  the  financing  of  their  trans- 
actions with  Latin  American  countries  have  had  no  difficulty  in 
doing  so,  as  drafts  drawn  against  shipments  have  been  readily  ac- 
cepted. The  houses  presenting  them  are  usually  perfectly  re- 
sponsible and  in  most  instances  the  same  may  be  said  of  the 
drawees. 

European  and  American  Banking  Methods. — American  manu- 
facturers who  analyze  the  financial  conditions  in  Latin  American 
countries  readily  understand  why  the  bill  on  London  has  been 
accepted  as  almost  the  standard  settlement  of  commercial  transac- 
tions not  only  in  Latin  America  but  throughout  the  world.  A 
comparison  of  the  banking  methods  used  in  European  countries 
with  those  of  the  United  States  makes  this  easily  understood. 
Abroad  the  bill  of  exchange  has  been  the  usual  means  of  settle- 
ment of  business  transactions.  This  bill,  because  of  its  general 
character  as  prime  commercial  paper,  has  always  been  recognized 
by  banking  institutions  as  highly  desirable,  and  discounted  with- 
out question.  In  the  United  States  the  method  of  financing  a 
business  has  been  by  notes.  These,  it  has  been  customary  for  the 
bank  which  made  the  loans  to  hold  until  maturity.  Until  the  enact- 
ment of  the  Federal  Reserve  Act,  which  permits  rediscount,  they 
have  not  been  made  use  of  as  have  been  the  accepted  bills  of  ex- 
change in  Europe. 

The  Direct  Bill  of  Exchange.. — Exchange  transactions  have  been 
so  generally  misunderstood  that  the  following  examples  may  serve 
to  enlighten  the  reader. 


218  EXPORTING  TO  LATIN  AMERICA 

An  importer  in  the  United  States  decides  to  make  a  purchase 
of  hides  in  Uruguay  but  is  informed  that  the  seller  expects  pay- 
ment when  the  hides  are  shipped.  The  American  importer  objects 
to  making  payment  until  the  hides  have  arrived  or  until  he  has  been 
enabled  to  resell  them  to  his  own  clients.  The  importer  therefore 
arranges  with  the  bank  through  its  branch  or  correspondent  in 
Uruguay  to  discount  the  Uruguayan  shipper's  bill  of  exchange  at 
say  three  to  four  months,  providing  that  the  bill  is  accompanied 
by  the  bill  of  lading,  consular  invoice,  insurance  policy,  and  other 
documents  in  which  the  ownership  of  the  hides  is  vested.  In 
accordance  with  this  arrangement  the  Uruguayan  dealer  makes 
a  draft  on  New  York  City  at  four  months  sight.  This  draft  is  de- 
posited with  the  bank  in  Montevideo,  which,  having  received  ad- 
vice from  the  New  York  bank,  purchases  the  bill  at  the  current 
rate  of  exchange  and  sends  it  to  the  New  York  bank  for  acceptance. 
In  the  meantime  the  hides  are  shipped  and  arrive  in  New  York 
City,  whereupon  the  New  York  bank  allows  the  importer  to  obtain 
the  hides  and  deliver  them  to  his  clients  who  pay  the  importer, 
enabling  the  latter  to  repay  the  bank  before  the  maturity  of  the 
bill  of  exchange.  Meanwhile,  the  bill  of  exchange  which  still 
has  time  to  run,  having  been  drawn  at  four  months  sight,  can  be 
rediscounted  with  the  Federal  Reserve  Board,  making  the  money 
immediately  available.  Such  a  bill  of  acceptance  can  also  be  sold 
in  the  open  exchange  market. 

The  Opportunities  for  Dollar  Exchange. — One  of  the  direct  re- 
sults of  the  establishment  of  branch  banks  in  accordance  with  the 
provisions  of  the  recently  enacted  Federal  Reserve  Act  will  be 
the  creation  of  a  permanent  market  for  dollar  exchange.  As  the 
branch  banks  will  be  branches  of  powerful  American  institutions, 
they  will  be  enabled  to  sell  drafts  in  dollars  on  the  head  institution. 
As  a  result,  at  least  one  of  the  commissions  which  merchants  have 
heretofore  had  to  pay  in  the  form  of  a  collection  charge  on  a  Lon- 
don bank  will  be  wiped  out,  and  the  value  of  the  dollar  in  inter- 
national banking  will  be  definitely  established.  The  money  speci- 
fied in  the  drafts  is  dollars  and  the  exchange  is  payable  only  in 
dollars. 

Furthermore,  the  advantage  to  the  purchasers  of  such  bills  is 
a  saving  of  interest  for  ten  or  twelve  days;  the  commission  is  also 
more  reasonable  than  in  the  past  and  the  risk  of  fluctuations  in 


FINANCIAL  CONDITIONS  ^Id 

the  exchange  is  eliminated.  The  influence  of  this  method  of  doing 
business  will  be  of  phenomenal  importance. 

Necessity  for  Cooperation. — The  difficulty  of  replacing  the  bill 
on  London  with  the  direct  dollar  exchange  emphasizes  the  neces- 
sity for  the  cooperation  of  business  interests  generally.  No  op- 
portunity should  be  lost  to  make  more  common  the  discounting  of 
drafts  and  accepted  bills  on  Latin  American  countries,  in  order 
that  the  international  discount  market  may  grow  in  importance. 

Provisions  of  the  Federal  Reserve  Law. — The  Federal  Reserve 
Board  issued  on  November  11th,  191-4,  the  rules  concerning  the 
definition  of  commercial  paper  that  is  eligible  for  discount.  Cer- 
tain of  the  rules  which  have  an  interest  for  the  export  and  import 
trade  are  as  follows : 

Regulation  of  Acceptances. — Any  Federal  Reserve  Bank  may  dis- 
count acceptances  which  are  based  on  the  importation  or  exportation 
of  goods  and  which  have  a  maturity  at  time  of  discount  of  not  more 
than  three  months,  and  indorsed  by  at  least  one  member  bank.  The 
amount  of  acceptances  so  discounted  shall  at  no  time  exceed  one- 
half  the  paid-up  capital  stock  and  surplus  of  the  bank  for  which 
the  rediscounts  are  made. 

The  aggregate  of  such  notes  and  bills  bearing  the  signature  or 
indorsements  of  any  one  person,  company,  firm,  or  corporation,  re- 
discounted  for  any  one  bank,  shall  at  no  time  exceed  ten  per  centum 
of  the  unimpaired  capital  and  surplus  of  said  bank,  but  this  restric- 
tion shall  not  apply  to  the  discount  of  bills  of  exchange  drawn  in 
good  faith  against  actually  existing  values. 

Any  member  bank  may  accept  drafts  or  bills  of  exchange  drawn 
upon  it  and  growing  out  of  transactions  involving  the  importation 
or  exportation  of  goods  having  not  more  than  six  months  sight  to 
run;  but  no  bank  shall  accept  such  bills  to  an  amount  equal  at  any 
time  in  the  aggregate  to  more  than  one-half  its  paid-up  capital  stock 
and  surplus. 

Section  19  of  the  Federal  Reserve  Act,  relating  to  reserves,  reads 
in  part  as  follows: 

Any  Federal  Reserve  Bank  may  receive  from  the  member  banks 
as  reserves,  not  exceeding  one-half  of  each  installment,  eligible  paper 
as  described  in  Section  14  properly  indorsed  and  acceptable  to  the 
said  reserve  bank. 


220  EXPOETING  TO  LATIN  AMERICA 

While  Section  13  provides  that  the  Federal  Reserve  Board  shall 
have  the  right  to  determine  or  define  the  character  of  the  paper 
thus  eligible  for  discount  within  the  meaning  of  the  act,  the  sec- 
tion referred  to  defines  in  general  terms  the  elements  which  such 
paper  must  possess  in  order  to  be  eligible. 

Paper  Offered  for  Discount. — All  paper  offered  for  discount 
under  this  section  to  any  Federal  Reserve  Bank  must  conform 
to  the  following  requirements: 

1.  It  must  be  indorsed  by  a  national  or  state  bank  or  trust 
company  which  is  a  member  of  the  Federal  Reserve  bank  to  which 
it  is  offered  for  rediscount. 

2.  Such  bank  must  with  its  indorsement  waive  demand  notice 
and  protest. 

3.  Paper  so  offered  shall  be  in  the  form  of  notes,  drafts,  or  bills 
of  exchange  arising  out  of  commercial  transactions;  that  is,  notes, 
drafts,  and  bills  of  exchange  issued  or  drawn  for  agricultural, 
industrial,  or  commercial  purposes,  of  which  the  proceeds  have 
been  used  or  are  to  be  used  for  such  purposes. 

4.  If  in  the  form  of  acceptances  they  must  be  based  on  transac- 
tions involving  the  importation  or  exportation  of  goods  and  must 
have  a  maturity  at  the  time  of  discount  of  not  more  than  at  least 
one  member  bank  and  the  total  amount  offered  shall  in  no  event 
exceed  one-half  the  paid-up  capital  stock  and  surplus  of  the  bank 
offering  same. 

5.  The  aggregate  of  notes  and  bills  bearing  the  signatures  or 
indorsement  of  any  one  person,  company,  firm,  or  corporation,  re- 
discounted  for  any  one  bank,  shall  at  no  time  exceed  10  per  cent. 
of  the  unimpaired  capital  and  surplus  of  said  bank  ;  but  this  restric- 
tion shall  not  apply  to  the  discount  of  bills  of  exchange  drawn  in 
good  faith  against  actually  existing  values. 

Subject  to  these  limitations  it  devolves  upon  the  Federal  Reserve 
Board  to  determine  or  define  for  the  several  Federal  Reserve  banks, 
(1)  notes,  drafts  and  bills  of  exchange  eligible  for  rediscount;  (2) 
bank  acceptances  eligible  for  rediscount. 

How  the  Federal  Reserve  Act  Works. — The  working  of  the  Fed- 
eral Reserve  Act  as  applied  to  transactions  with  Latin  American 
countries  may  be  shown  thus: 

A  manufacturer  in  St.  Louis  receives  an  order  for  agricultural 
implements  to  be  shipped  to  Paraguay.    The  importer  in  the  Latin 


FINANCIAL  CONDITIONS  221 

American  country  has  arranged  for  credit  which  is  made  available 
through  his  own  local  hank  with  some  institution,  probably  a  bank 
in .  New  York.  The  manufacturer  of  implements  in  St.  Louis 
makes  a  draft  at  four  or  five  months  sight,  which,  after  having 
run  for  ninety  days,  can  be  rediscounted  with  the  Federal  Ee- 
serve  bank  or  sold  in  the  open  foreign*  exchange  market. 

Financing  Foreign  Shipments. — While  the  Federal  Eeserve  Act 
makes  possible  the  rediscount  of  drafts  on  Latin  American  coun- 
tries, other  means  of  obtaining  cash  for  shipments  have  long  been 
used  by  numerous  firms  who  have  achieved  success  in  Latin  Amer- 
ica. In  this  they  merely  followed  the  customs  of  European  ex- 
port houses  or  manufacturers  and  sold  their  bills  of  exchange;  that 
is,  drafts  drawn  at  a  certain  number  of  days  sight  on  dealers  in 
Latin  America  were  sold  to  bankers  dealing  in  foreign  exchange. 
In  many  instances  such  institutions  maintain  offices  in  New  York 
and  in  discounting  drafts  drawn  for  a  stipulated  length  of  time 
they  exact  the  indorsement  of  the  shipper  who  is  then  advanced 
the  cash.  This  is  done  even  in  the  case  of  manufacturers  who 
do  not  enjoy  the  best  credit  standing  but  who  are  able  to  demon- 
strate that  they  are  doing  a  legitimate  business  with  responsible 
houses  in  Latin  America  who  pay  the  drafts  at  maturity. 

Discounting  of  Foreign  Drafts  hy  Local  Banks. — A  matter  of 
great  practical  assistance  to  manufacturers — which  should  receive 
the  earnest  attention  of  trade  bodies — is  that  of  encouraging  local 
banks  to  discount  the  drafts  of  their  members  on  foreign  coun- 
tries. This  should  be  done  without  counting  such  a  draft  against 
the  usual  credit  of  the  manufacturer,  since  the  draft,  bearing  the 
indorsement  of  the  shipper  and  accompanied  by  the  bill  of  lading 
and  other  necessary  papers  in  which  the  ownership  of  the  shipment 
is  vested,  should  be  sufficient  security  for  the  bank.  Only  in  rare 
instances  are  such  drafts  refused  when  proper  shipping  directions 
have  been  followed.  Banks  in  interior  cities  should  also  be  en- 
couraged to  establish  direct  relations  with  banks  in  foreign  coun- 
tries in  order  that  drafts  may  be  sent  direct,  minimizing  the  cost 
of  collection.  If  this  is  not  done,  the  local  bank  may  be  com- 
pelled to  send  the  draft  through  a  New  York  institution  which 
may  or  may  not  have  a  foreign  exchange  department.  If  it  has  not, 
it  is  compelled  to  pass  on  the  draft  to  an  institution  having  such 
a  department,  thereby  incurring  extra  commissions. 


222  EXPORTING  TO  LATIN  AMERICA 

Effect  of  the  Federal  Reserve  Act. — A  direct  benefit  of  the  Fed- 
eral Reserve  Act  will  be  the  opening  of  a  vast  well  of  credit  to 
American  manufacturers,  who  will  no  longer  be  compelled  to 
depend  upon  the  London  or  other  European  exchange  firms.  The 
law  directly  authorizes  banks  to  accept  bills  on  shipments  of 
merchandise  drawn  at  six  months'  time,  and  when  such  bills  are 
within  ninety  days  of  maturity  they  may  be  rediscounted  by  the 
Federal  Reserve  banks.  As  the  capital  of  the  National  banks  is 
almost  $1,800,000,000  and  as  the  total  amount  of  such  bills  which 
are  subject  to  discount  may  reach  this  amount,  the  importance  to 
the  American  export  interests,  of  the  new  law,  may  be  readily  ap- 
preciated. Another  feature  of  the  Reserve  Act  is  the  permission  to 
establish  branches  of  large  American  banks  in  Latin  American 
cities,  already  taken  advantage  of  by  several  institutions. 

Why  European  Banks  Succeed. — As  almost  every  European  bank 
that  has  been  established  in  Latin  America  has  achieved  success, 
analysis  of  the  reasons  therefor  is  interesting.  Their  prosperity 
may  be  attributed  in  large  measure  to  the  following: 

1.  Absence  of  detrimental  competition  of  native  banks, 

2.  Advantages  of  a  system  of  branch  banks  widely  scattered, 
each  of  which  does  business  on  a  comparatively  small  capital.  The 
main  banking  house  is  usually  located  in  the  capital  of  the  re- 
public with  small  branches  throughout  the  country. 

3.  Profits  on  commissions,  exchange,  etc.,  resulting  from  ne- 
gotiating the  business  of  steamship  lines,  railroads,  and  financial 
interests  of  all  sorts  established  by  capitalists  of  various  na- 
tionalities. 

4.  Intimate  cooperation  with  banking  houses  of  the  country  from 
which  the  capital  of  the  bank  is  derived. 

5.  Profits  of  handling  through  London,  Paris,  and  Berlin  in 
preference  to  New  York,  drafts,  bills  of  exchange,  and  letters  of 
credit,  etc. 

G.  Competent  management  by  men  thoroughly  acquainted  with 
the  language,  customs,  and  laws  of  the  people  or  sections  in  which 
they  are  located,  as  a  result  of  their  long  residence. 

7.  The  high  interest  rates  because  of  limited  capital  in  the 
country. 

8.  Profits  from  the  sale  of  the  local,  state,  and  national  securities, 
which  were  underwritten  by  them. 


FINANCIAL  CONDITIONS  223 

9.  No  opportunity  for  profit  was  lost.  Almost  every  legiti- 
mate commercial  transaction  was  underwritten. 

Banking  Practices  in  Latin  America. — Banking  in  the  Latin 
American  countries  has  been  one  of  the  most  lucrative  businesses 
that  has  engaged  capital.  Generally  speaking,  th.e  banks  have 
been  well  managed,  and  while  often  very  liberal  in  their  accom- 
modations they  have  been  exceedingly  successful.  The  character 
of  the  loans  has  been  such,  however,  that  in  some  countries  there 
is  an  insistent  demand  for  greater  supervision.  Banking  failures, 
notwithstanding,  have  been  very  infrequent  and  the  great  demand 
for  capital  has  made  for  the  highest  interest  rates. 

Commercial  Banking  in  General. — In  the  Latin  American  re- 
publics, banking  practice  differs  somewhat  from  banking  as  car- 
ried on  in  the  LTnited  States.  One  of  the  chief  sources  of  difference 
is  in  the  manner  of  exchange  operations,  due  to  the  fact  that  in 
some  of  the  republics  the  variations  are  so  rapid  that  extreme 
care  must  be  taken  to  avoid  losses.  The  foreign  banks,  whose  home 
offices  are  in  Europe,  work  very  closely  with  those  offices,  espe- 
cially in  the  matter  of  exchange.  They  also  make  it  possible  for 
the  main  institution  intelligently  to  conduct  operations  in  the  pur- 
chase of  drafts  on  merchants  located  in  the  various  Latin  Amer- 
ican countries.  This  is  accomplished  by  supplying  to  the  home 
office  credit  information,  etc.  The  financing  in  connection  with 
drafts  is  an  important  function ;  the  making  of  loans  to  merchants 
and  importers  in  general  is  the  most  profitable  branch.  As  a 
bank  increases  in  importance  and  capital,  the  sale  of  securities, 
not  only  of  private  enterprises  but  of  governmental  issues,  is  looked 
after.  Other  features  of  American  and  foreign  banking,  such  as 
the  savings  departments,  the  placing  of  mortgages,  and  under- 
writing operations  in  general,  are  undertaken. 

Loans  and  Discounts. — The  custom  of  giving  credit  freely  pre- 
vails generally  throughout  Latin  America  and  has  unquestionably 
contributed  in  part  to  the  financial  depression  which  became  so 
marked  during  the  latter  part  of  1912-1913.  The  rates  of  interest 
vary,  but  are  often  from  8  per  cent,  to  12  per  cent.  The  time 
also  varies  but  loans  are  frequently  for  longer  periods  than  are 
granted  in  the  United  States  (six  and  twelve  months). 

Other  Practices. — The  banks  of  Latin  America  are  accustoms 
to  permit  overdrafts,  charging  for  this  privilege  8  per  cent,  to  Iv? 


224  EXPORTING  TO  LATIN  AMERICA 

per  cent.  The  usual  method  in  overdrafts  is  as  follows:  Business 
men  who  are  possessed  of  a  good  standing  are  accustomed  to- open 
accounts  in  a  number  of  banks,  this  varying  in  proportion  to  the 
volume  of  business,  being  often  with  as  many  as  ten  or  twelve 
banks.  A  credit  is  accorded  by  each  bank,  the  customer  being 
permitted  to  overdraw  from  $5,000  to  $20,000.  By  this  means  it 
is  possible  for  a  merchant  with  a  much  smaller  capital  than  in  the 
United  States  (provided  he  has  a  good  reputation)  to  obtain  a 
larger  accommodation.  Efforts  are  now  being  made  to  change 
this  practice  and  to  provide  for  more  careful  methods,  although 
this  business  has  proven  very  successful  and  excellent  dividends 
have  been  declared  on  most  bank  stocks. 

Government  Supei*vision. — In  almost  all  of  the  countries  there  is 
certain  governmental  supervision  but  only  in  some  of  them  are  the 
provisions  for  examination  exacting.  The  result  is  that  the  paper 
that  protects  loans  is  often  of  a  very  questionable  character. 

Collection  Charges,. — One  of  the  chief  sources  of  profit  of  Latin 
American  banks  has  been  the  collection  of  commercial  documents. 
The  charges  range  from  %  of  one  per  cent,  to  1  per  cent.,  the 
former  usually  applying  to  the  large  cities  and  the  latter  to  places 
that  are  more  remote.  As  branches  of  native  or  European  banks 
are  foinid  in  practically  every  commercial  community  where  there 
exist  opportunities  for  business,  this  is  of  enormous  advantage  to 
American  exporters. 

"Why  European  Influence  Has  Waned. — The  European  War  thor- 
oughly demoralized  financial  conditions  in  Latin  America  and 
completed  the  depression  which  had  adversely  affected  business 
generally  in  the  Latin  American  countries  during  1913-1914. 
This  climax  was  due  to  the  fact  that  the  finances  of  these  coun- 
tries has  been  dominated  by  European  bankers,  and  the  extraor- 
dinary extent  to  which  Germany  alone  was  interested,  through 
its  great  banking  houses  and  banks,  caused  little  less  than  a  ca- 
tastrophe. Not  only  were  the  markets  of  the  southern  coun- 
tries temporarily  closed  and  the  capital  investments  shut  off,  but 
the  exchange  dropped  so  sharply  that  in  many  quarters  the  severest 
crises  were  felt. 

The  seriousness  of  the  situation  crystallized  the  sentiment  which 
had  been  developing  in  the  United  States  for  more  intimate  finan- 
cial relations  with  the  southern  countries.     It  was  realized  in 


FINANCIAL  CONDITIONS  226 

all  quarters  that  if  advantage  was  taken  of  the  opportunity  the 
United  States  might  obtain  rightful  representation  in  the  finan- 
cial interests  of  the  Latin  American  countries. 

The  enactment  of  the  Federal  Reserve  Law  provided  the  neces- 
sary machinery  for  strong  financial  institutions  to  enter  that 
field. 

The  Opportunities  for  American  Banks. — The  o])portunities  for 
American  banlvs  in  Latin  America  are  based  on  the  following 
reasons. 

1.  The  need  for  capital  to  finance  projects  of  all  sorts,  including 
industrial,  agricultural,  and  other  loans. 

2.  To  enter  the  exchange  market  and  encourage  the  purchase 
of  dollar  exchange. 

3.  To  supply  information  regarding  trade  opportunities,  credit 
reports,  and  information  of  general  use  in  the  development  of 
business. 

Particularly  in  the  financing  of  large  projects  are  the  oppor- 
tunities desirable,  inasmuch  as  the  domination  of  American  in- 
terests in  such  financing  would  insure  the  purchase  of  American 
supplies.  This  policy  is  typical  of  that  which  has  made  the  Euro- 
pean nations  so  powerful  in  the  business  of  the  Latin  American 
countries. 

American  Branch.  Banks  in  Latin  America. — The  Federal  Re- 
serve Act  authorized  the  establishment  of  branch  banks  by  Na- 
tional banking  institutions  with  a  capital  of  $1,000,000  or  more.  As 
a  result  branch  banks  are  now  being  established  by  the  powerful 
financial  interests  of  this  country,  notably  the  National  City  Bank 
of  New  York,  which  has  opened  branches  in  Buenos  Aires,  Rio 
de  Janeiro,  Santos,  and  Montevideo.  These  banks  will  not  only 
enter  actively  into  the  banking  business  but  will  render  much  as- 
sistance which  is  usually  only  extended  by  commercial  organi- 
zations. A  commercial  bureau  will  be  maintained  in  connection 
with  each  branch,  to  investigate  and  study  thoroughly  trade  oppor- 
tunities in  the  districts  of  the  various  branches.  Manufacturers 
desiring  to  do  business  in  these  countries  will  be  advised  of 
the  possibilities  for  the  sale  of  their  goods  and  efforts  will  be 
made  to  provide  specific  aid  in  obtaining  local  or  general  agents. 
Information  will  also  be  given  regarding  the  necessities  for  pack- 
ing and  shipping  articles,  after  they  have  been  properly  prepared. 


226  EXPORTING  TO  LATIN  AMERICA 

to  meet  the  requirements.  Other  advantages  will  naturally  fol- 
low the  establishment  of  such  branches  and  will  aid  in  the  scien- 
tific  development   of  American   export  business. 

Supplying  Credit  Information  to  American  Manufacturers. — 
While  the  American  banks  which  are  established  in  Latin  America 
would  naturally  be  more  disposed  to  supply  the  information  re- 
quired by  American  manufacturers  than  would  the  banking  insti- 
tutions of  competitive  nations,  nevertheless  there  is  but  very  little 
difficulty  in  that  respect  today.  Almost  every  bank  in  Latin 
America,  no  matter  of  what  nationality,  will  courteously  answer 
inquiries  of  American  business  men  regarding  the  financial  stand- 
ing of  merchants  of  their  district,  provided  an  international  post- 
office  coupon  is  inclosed.  Furthermore,  American  traveling  men 
properly  provided  with  letters  of  introduction,  when  presenting 
them  to  the  managers  of  such  banks,  will  almost  invariably  be 
given  frank  and  fair  estimates  of  the  worth  of  the  dealers  con- 
cerning whom  they  may  make  inquiry.  It  is,  nevertheless,  to 
the  advantage  of  American  exporters  to  send  their  documents 
and  invoices  to  an  American  institution  friendly  to  their  inter- 
ests. It  is  not  unreasonable  to  expect  that  they  will  be  more 
closely  guarded  than  in  the  case  of  a  competitive  nation. 

Other  North  American  Banks  in  Latin  America. — In  addition 
to  the  branches  of  the  National  City  Bank,  other  banks  of  the 
United  States  are  extending  their  activities  to  Latin  America. 
Among  these  are  the  following: 

The  Mercantile  Bank  of  the  Americas  of  New  York;  authorized 
capital,  $5,000,000;  paid-in  capital  of  $400,000  cash  and  surplus 
$100,000.  Its  field  includes  Central  America,  and  Northern  South 
America,  including  Venezuela,  Colombia,  Ecuador,  and  Peru,  Its 
service,  in  general,  is  similar  to  that  of  the  National  City  Bank. 

The  Continental  Banking  and  Trust  Company  of  Panama.  This 
organization,  representing  West  Virginia  capitalists,  has  estab- 
lished branches  in  David,  Bocas  del  Toro,  and  Chorillo,  Panama, 
also  in  Santa  Marta,  Colombia. 

The  Commercial  National  Bank  of  Washington,  D.  C,  has  es- 
tablished a  branch   in   Panama. 

W.  R.  Grace  and  Company  of  New  York  have  branches  in  many 
cities  of  South  America,  and  in  connection  with  their  other  affairs 
conduct  a  general  banking  business. 


FINANCIAL  CONDITIONS  227 

Future  Opportunities. — It  is  not  alone  in  the  conduct  of  gen- 
eral mercantile  banks  that  opportunities  for  North  American 
bankers  exist  in  L^tin  America.  Especially  promising  are  the 
possibilities  of  financing  the  numerous  enterprises  in  the  rapidly 
developing  countries.  Very  profitable  will  undoubtedly  be  the 
sale  of  the  bonds  and  stocks  of  Latin  American  enterprises  in  the 
LTnited  States.  This  work  is  logically  that  of  American  banking 
institutions.  The  greater  returns  from  investments  in  the  Latin 
American  republics,  when  properly  administered,  will  make  it 
possible  to  obtain  much  capital  from  the  United  States,  and  to 
direct  such  investments  will  be  the  work  of  financiers  from  the 
United  States  who  are  trained  to  this  end. 

The  American  International  Corporation. — As  a  significant 
feature  in  the  extension  of  American  financial  influence  to  Latin 
America  may  be  cited  the  organization  of  the  American  Interna- 
tional Corporation.  This  institution  was  founded  in  the  fall  of 
1915  with  a  capital  of  $50,000,000.  Its  purpose  is  not  alone  to 
develop  trade  with  the  Latin  American  republics  but  to  transact 
business  of  many  kinds  and  of  vast  importance.  This  includes  the 
construction  of  public  works,  the  development  of  enterprises  of 
all  sorts,  the  acquisition  and  operation  of  railroads,  steamship  lines, 
etc.  This  company  was  organized  by  interests  closely  associated 
with  the  National  City  Bank  and  the  International  Banking  Cor- 
poration, both  of  New  York. 

Useful  Publications  Concerning  Banking. — A  number  of  publi- 
cations of  value  to  the  student  of  Latin  American  banking  and 
finances  will  be  found  listed  on  page  465  of  the  Appendix. 


CHAPTEE   XIV 

TARIFFS,  CUSTOM    HOUSE  REGULATIONS,  AND  TAXES  IN 
LATIN  AMERICA 

Introduction. — In  considering  the  development  of  business  in 
Latin  iVmerica,  one  of  the  first  essentials  is  an  investigation  of  the 
tariff  laws  of  the  different  countries  in  which  it  is  sought  to  market 
a  particular  product.  Such  an  investigation  need  only  be  con- 
fined to  determining  whether  the  ultimate  consumer  will  still  buy 
the  article  after  it  has  been  imported  and  the  duty  has  been  paid; 
the  importer,  of  course,  will  in  the  meantime  have  paid,  in  addi- 
tion to  the   duty,  the  freight  and  other  charges. 

Tariff  Systems  in  Latin  America. — In  order  to  understand  thor- 
oughly the  tariff  systems  of  Latin  America  as  they  exist  today,  it 
is  important  to  remember  that  they  were  not  definitely  created  but 
have  had  a  gradual  development  and  growth.  The  duties  vary, 
being  either  ad  valorem  or  specific ;  in  certain  of  the  republics  both 
are  charged.  In  some  of  the  countries  the  duty  is  calculated  in 
silver;  in  others  in  gold.  In  the  latter  case,  while  the  calculation 
is  made  in  gold,  paper  money  is  accepted  at  a  fixed  rate.  In  three 
countries  a  mixed  gold  and  paper  method  of  payment  is  allowed. 
In  most  of  the  Latin  American  states  the  duty  is  required  to  be 
paid  in  gold  or  in  National  currency  equivalent  thereto. 

How  to  Study  Tariff  Systems. — The  importance  of  studying  the 
tariff  affecting  a  product  which  it  is  desired  to  export  is  obvious. 
The  possibility  for  its  sale  may  be  absolutely  nullified  by  the  tariff 
as  applied  by  one  of  the  republics,  and  yet  in  other  Latin  American 
countries  more  favorable  tariff  legislation  may  make  possible  a 
large  business.  It  is  only  by  a  very  careful  analysis  that  the  manu- 
facturer can  decide  whether  it  is  possible  for  him  to  export  to  orie 
or  more  of  the  republics.  The  analysis  of  the  tariff  situation  should 
have  as  its  basis  the  following: 

1.  The  exact  tariff  charged. 

2.  Whether,  in  spite  of  the  tariff,  a  sale  would  be  possible. 

228 


TARIFFS  AND  TAXES  229 

3.  The  relation  of  the  tariff,  if  specific,  to  packing  the  product, 
its  safe  arrival,  handling  and  sale. 

4.  How  European  or  other  competitors  overcome  tariff  handi- 
caps on  particular  articles  by  packing,  sales  methods,  advertis- 
ing, etc. 

The  Relation  of  Weight  to  Tariff. — When  a  tariff  schedule  is 
based  on  weight  and  a  specific  weight  is  assessed,  the  question  of 
packing  becomes  instantly  important.  In  this  connection  the  ex- 
porter must  remember  that  the  metric  system  is  used  exclusively 
in  Latin  America  and  the  unit  is  the  kilogram  (2.3  pounds),  not 
the  hundredweight  or  the  ton.  The  schedules  by  which  the  tariff 
is  assessed  are  very  numerous  and  only  a  thorough  examination 
will  determine  the  class  to  which  goods  are  to  be  assigned.  For 
the  purpose  of  supplying  the  proper  invoices  and  to  enable  the 
exporter  to  obtain  the  very  lowest  tariff  rate,  it  is  desirable  that 
the  exporter  request  the  buyer  in  Latin  America  to  supply  with 
the  order  an  exact  memorandum  of  the  declaration  he  desires. 
This  declaration  should  be  furnished  by  the  importer  in  Spanish 
or  Portuguese,  and  should  be  copied  to  the  letter.  This  will  save 
a  great  deal  of  trouble  besides  simplifying  the  question  for  the 
importer.  In  every  order  sheet  should  be  left  a  column  under 
which  the  customs  description  of  the  article  imported  is  to  be 
specified. 

The  Basis  of  Latin  American  Tariffs. — The  tariffs  of  Latin 
America  are  not  calculated  exclusively  from  the  commercial  stand- 
point. They  are  generally  governmental  measures,  to  produce 
revenue  or  to  afford  protection.  In  the  more  rapidly  developing 
countries,  many  of  the  important  political  struggles  of  the  fu- 
ture will  have  as  a  basis  the  principle  of  protection,  inasmuch 
as  certain  classes  are  benefited  by  this  policy  while  other  classes 
will  oppose  such  laws  because  of  their  disadvantages  to  them.  In 
any  event,  the  rate  of  duty,  even  on  the  same  article,  may  be  differ- 
ent in  each  of  the  twenty  republics.  This  applies  not  only  to 
the  specific  rates  charged  but  also  to  the  classification  and,  par- 
ticularly, to  the  principle  of  a  specific  or  ad  valorem  tariff. 

The  Theory  of  Latin  American  Tariffs. — With  the  exception  of  a 
very  insignificant  number  of  articles  (not  to  exceed  five  per  cent, 
of  those  imported),  the  importations  into  Latin  America  repre- 
sent goods  which  cannot  be  manufactured  or  are  not  produced 


230  EXPOETING  TO  LATIN  AMEEICA 

by  the  country  into  which  they  are  imported.  Even  when  there 
is  a  native  production,  the  importations  are  usually  of  an  en- 
tirely different  grade  or  quality  from  those  produced  in  the  repub- 
lic. The  tariffs  which  are  charged  are  almost  invariably  for 
the  production  of  revenue  and  are  but  rarely  designed  to  act  (as 
in  the  case  of  the  American  tariff)  for  the  protection  of  a  home 
industry. 

How  the  Tariff  Laws  Work. — The  application  of  a  specific  tariff 
in  Latin  America  results  in  the  payment  of  identical  duties  on 
the  same  articles,  even  though  of  a  wide  range  of  quality.  As 
a  concrete  instance  may  be  cited  the  following: 

Suppose  two  different  articles,  one  worth  $300,  the  other  $700, 
were  imported  into  the  United  States.  The  duty,  if  calculated 
on  an  ad  valorem  basis  of  40  per  cent,  would  be  respectively  $80 
for  the  first  and  $280  for  the  second.  If  these  should  be  imported 
into  a  South  American  republic,  Chile  for  example,  the  duty 
Avould  be  assessed  regardless  of  the  difference  in  quality.  The 
definite  effect  is  to  encourage  the  importation  of  high-priced 
articles,  and  to  discourage  the  importation  of  those  not  so  ex- 
pensive. 

Because  of  these  conditions,  the  European  manufacturer  fre- 
quently is  enabled  to  outsell  his  American  competitor.  It  is  not 
that  he  has  an  advantage  in  a  lower  tariff  rate  but  simply  that 
by  reason  of  his  close  study  of  the  tariff  laws  he  makes  such 
changes  in  his  product  that  he  is  enabled,  without  altering  its 
appearance  or  durability,  to  place  it  in  a  lower  category  and  ob- 
tain the  benefits  of  the  new  schedule  into  which  it  then  naturally 
falls.  The  use  of  ornamentation  upon  an  article,  a  special  trim- 
ming, or  an  erroneous  description  frequently  compels  the  customs 
house  authorities  to  apply  a  schedule  calling  for  a  higher  rate. 

Proper  Classification  Indispensable. — It  is  not  alone  important 
that  the  manufacturer  study  the  intricacies  of  the  proper  declara- 
tion of  materials,  but  he  must  also  realize  the  necessity  for  accu- 
racy in  description.  He  should  make  every  effort  to  ascertain  by 
what  name  an  article  should  be  termed  in  order  to  place  it  in 
the  most  favorable  classification  that  it  may  obtain  the  lowest 
possible  rate  of  duty.    This  can  be  done  in  two  ways : 

1.  By  insisting  that  traveling  or  local  representatives  obtain  defi- 
nite  instructions   from   the  client. 


TARIFFS  AND  TAXES  231 

2.  When  business  is  done,  direct  that  the  merchant  indicate 
exactly  how  a  particular  article  is  to  be  described  on  the  invoice. 

When  an  article,  if  trimmed,  pays  a  higher  rate  of  duty  than 
if  untrimmed  or  when  adorned  with  certain  decorative  materials, 
the  manufacturer  should  ascertain  whether  he  may  not  ship  the 
articles  separately;  that  is,  whether  he  may  pack  them  in  dif- 
ferent packages  and  so  describe  them  on  his  invoice.  In  the  mat- 
ter of  declarations  for  tariff  purposes,  the  necessity  for  painstak- 
ing care  and  attention  to  detail  are  of  transcendent  importance. 

The  Interpretation  of  Descriptions. — Upon  the  proper  descrip- 
tion and  designation  of  goods  depends  the  duty  assessed,  and  the 
use  for  which  certain  merchandise  is  intended  should  therefore 
be  specified.  As  a  definite  example  may  be  cited  the  case  of  ma- 
chinery. In  some  countries,  Avhere  this  is  for  use  in  mining  it  is 
entirely  free  of  duty,  but  if  defined  as  ordinary  machinery  would 
be  subject  to  duty. 

The  Meaning  of  Surtaxes  and  Exemptions. — In  addition  to  the 
tariffs  which  affect  specific  rates  according  to  weight  or  value 
in  customs  duties,  a  number  of  the  republics  exact  a  surtax,  vary- 
ing in  percentage,  the  proceeds  of  which  are  used  for  definite 
purposes.  An  example  is  a  tax  to  overcome  loss  in  revenue,  another 
is  a  fund  to  assist  the  development  of  the  country.  Certain 
articles  are  exempted  both  from  the  tariffs  and  surtaxes,  or,  in 
other  instances,  from  the  latter  only.  While  the  subject  at  first 
may  seem  complex,  the  application  of  simple  principles  will  save 
the  manufacturer  much  trouble,  particularly  if  a  definite  declara- 
tion is  asked  of  the  customer. 

The  Value  of  a  Preferential  Tariff. — In  some  countries,  notably 
in  the  Republic  of  Brazil,  there  exists  a  preferential  tariff  on 
American  products  which  enables  the  American  manufacturer  to 
enjoy  advantages  over  European  competitors.  In  Brazil  the  list 
of  articles  on  which  there  is  a  preferential  tariff  of  20  per  cent, 
includes  the  following  items : 

Paints  and  inks,  except  writing  fluid,  and  varnishes;  wheat, 
flour,  pianos,  condensed  milk,  scales,  windmills,  refrigerators, 
watches,  clocks,  manufactures  of  rubber,  and  typewriters.  Manu- 
facturers of  these  articles  will  be  enabled,  because  of  the  rebate, 
to  obtain  a  considerable  volume  of  business  if  proper  efforts  are 
made. 


233  EXPORTING  TO  LATIN  AMEEICA 

Certain  Articles  Exempt  from  Duties. — Many  Americans  are 
unaware  of  the  fact  that  in  certain  of  the  Latin  American  coun- 
tries there  is  no  duty  upon  many  manufactures.  This  is  par- 
ticularly the  case  in  Chile,  where  important  elements  which  make 
for  industrial  development,  such  as  tools,  machinery,  fuel  and 
other  materials,  are  allowed  to  enter  without  payment  of  any  duty. 
In  other  countries  the  same  policy  prevails.  By  ascertaining  in 
which  of  the  countries  such  benefits  may  be  derived  the  alert  manu- 
facturer will  greatly  profit. 

The  Equality  of  the  Tariif  as  Affecting  Imports, — Another  fac- 
tor which  is  often  overlooked  and  which  is  a  basic  principle  is 
that  the  American  manufacturer  is  on  an  equality  with  the  manu- 
facturers of  the  entire  world.  Therefore,  even  though  a  tarifE  is 
changed  or  extremely  high,  he  is  at  no  disadvantage  as  compared 
with  the  manufacturers  of  other  countries.  As  the  tariff  laws  are 
interpreted  differently  in  the  case  of  each  country,  manufacturers 
should  consider  this  fact  before  having  goods  packed. 

Principles  of  Tariff  Regulations  in  Latin  America. — The  basis 
on  which  the  duties  are  assessed  in  the  various  Latin  American 
countries  is  outlined  in  the  following  paragraphs,  and  naturally 
only  the  general  laws  can  be  stated  and  each  shipment  must  be 
considered  individually : 

Argentina. — Most  articles  mentioned  in  tlie  tariff  are  dutiable 
021  legal  weight;  that  is,  on  gross  weight  with  a  reduction  for  tare, 
fixed  in  accordance  with  the  nature  of  the  packing.  The  shipment 
of  merchandise  of  different  classes  in  one  case  or  package  is  to 
be  avoided,  as  the  customs  authorities  may  apply  to  the  entire 
shipment  the  duty  of  the  highest  taxed  article  included  in  the 
shipment. 

Bolivia. — There  is  no  general  rule  for  the  application  of  the 
tariff  to  articles  dutiable  by  weight,  some  of  thcni  being  dutiable 
on  net  weight,  some  on  gross  weight,  and  some  on  the  weight 
of  the  merchandise  together  with  that  of  the  immediate  packing, 
such  as  a  cardboard  box  or  paper,  but  exclusive  of  barrels,  wooden 
or  tin  boxes,  or  any  material  serving  as  a  covering  for  the  outside 
containers.  There  is  no  penalty  for  mixed  packing,  provided  such 
packing  is  not  intended  as  a  menus  to  defraud  the  customs. 

Brazil. — Of  the  articles  duiiablc  by  weight  in  Brazil,  some  pay 
duty  on  gross  weight,  some  on  legal  net  weight,  and  some  on 


TAEIFFS  AND  TAXES  233 

actual  net  weight.  By  gross  weight  is  meant  the  weight  of  the 
goods  together  with  that  of  the  packing,  except  rough  wooden 
containers.  By  legal  net  weight  is  meant  the  gross  weight  less 
the  tare  allowances  indicated  in  the  tariff  for  different  merchandise 
and  containers.  By  actual  net  weight  is  meant  the  weight  of 
the  merchandise  without  any  packing.  When  goods  dutiable  on 
legal  net  weight  and  actual  net  weight  are  imported  in  the  same 
package,  both  pay  duty  on  actual  net  weight.  The  same  rule  ap- 
plies when  the  package  contains  only  merchandise  dutiable  on  net 
weight,  but  with  different  tare  allowances.  Allien  goods  subject 
to  different  duties,  but  all  dutiable  on  gross  weight,  are  im- 
ported in  the  same  package,  the  weight  of  the  packing  is  dis- 
tributed proportionally  among  the  different  kinds  of  merchan- 
dise. 

Chile. — Merchandise  subject  to  diity  by  weight  may  be  dutiable 
on  net  weight,  gross  weight,  weight  including  packing,  or  weight 
including  containers.  There  are  so  many  definitions  and  rules 
imposed  for  the  application  of  the  customs  tariff  that  a  study 
of  each  is  required. 

Colombia. — Duty  is  levied  on  gross  weight.  Merchandise  sub- 
ject to  different  rates  of  duty  may  be  packed  in  the  same  con- 
tainer, provided  the  gross  and  net  weight  of  each  kind  of  mer- 
chandise is  indicated.  If  the  weight  is  not  indicated  separately, 
the  rate  of  the  highest  taxed  article  is  applied  to  the  entire 
shipment. 

Costa  Rica. — Duty  is  levied  on  gross  weight.  In  the  case  of 
goods  subject  to  different  rates  of  duty,  packed  in  the  same  con- 
tainer, the  net  weight  of  each  kind  of  merchandise  must  be  indi- 
cated, so  that  the  weight  of  the  packing  may  be  distributed  pro- 
portionally among  the  different  classes  of  merchandise.  In  the 
absence  of  such  information  the  duty  on  the  highest  taxed  article 
in  the  shipment  is  applied  to  the  entire  contents. 

Cuba. — iVrticles  are  dutiable  on  gross  weight,  actual  net  weight, 
or  legal  weight,  as  indicated  in  the  tariff  for  each  item.  The  legal 
net  weight  is  calculated  in  accordance  with  a  schedule  of  tare 
allowances  annexed  to  the  tariff. 

Dominican  RepnhJic. — Under  the  Dominican  customs  rules  mer- 
chandise is  dutiable  either  on  gross  or  net  weight.  No  duty  is 
collected  on  the  tare  except  in  the  case  of  certain  specific  packings 


234  EXPORTING  TO  LATIN  AMERICA 

which  are  subject  to  tariff.  There  are  numerous  rules  which  should 
be  consulted  by  the  exporter. 

Ecuador. — Merchandise  imported  into  Ecuador  is  dutiable  either 
on  gross  or  net  weight.  No  penalty  is  imposed  for  packing  in 
the  same  container  merchandise  subject  to  different  rates  of  duty. 
In  such  cases  it  is  required  that  the  shipper  state  in  the  consular 
invoice  the  net  weight  of  each  kind  of  merchandise,  as  well  as 
the  gross  weight  of  the  entire  package. 

Guatemala. — The  duty  on  merchandise  may  be  levied  on  net 
weight,  on  weight  including  packing,  except  outer  containers,  or 
on  gross  weight,  according  to  the  provisions  of  the  customs  tariff. 
In  the  case  of  merchandise  dutiable  on  weight  including  pack- 
ing, imported  loose  in  an  outer  container,  the  weight  of  the  latter 
is  not  included  in  the  dutiable  weight.  When  merchandise  duti- 
able on  weight  including  packing  is  imported  in  the  same  re- 
ceptacle with  merchandise  dutiable  on  gross  weight,  the  duty  on 
the  latter  merchandise  is  levied  on  the  weight  including  packing, 
with  the  addition  of  one-fourth  thereof,  to  compensate  for  the 
outer  container  which  is  not  included  in  weighing  the  merchan- 
dise. Cloth  used  for  wrapping  merchandise  must  be  declared  for 
duty,  only  oilcloth  and  tarpaulin  being  considered  as  part  of  the 
packing.  A  fine  is  imposed  by  the  customs  authorities  for  packing 
in  the  same  receptacle  merchandise  subject  to  different  rates  of 
duty. 

Haiti. — Goods  subject  to  duty  by  weight  are  dutiable  on  the 
net  weight.  No  fine  is  imposed  for  packing  in  one  receptacle 
articles  subject  to  different  rates  of  duty,  provided  that  the  mer- 
chandise is  properly  declared. 

Honduras. — All  merchandise  subject  to  duty  is  dutiable  on  gross 
weight.  No  fine  is  imposed  for  packing  in  one  receptacle  mer- 
chandise subject  to  different  duties. 

Mexico. — The  duty  on  merchandise  dutiable  by  weight  is  levied 
on  net,  legal,  or  gross  weight,  according  to  the  provisions  of  the 
tariff.  No  penalty  is  imposed  for  mixed  packing,  if  the  merchan- 
dise is  declared  properly.  Mexico  has  its  own  interpretation  of 
legal  and  gross  weights  which  should  be  studied  by  the  shipper. 
It  is  important  to  declare  the  weights  of  different  items  packed 
ill  tlio  same  case. 

Nicaragua. — All   duties  are  levied  on  gross  weight.     It  is  not 


TARIFFS  AND  TAXES  235 

permitted  to  pack  more  than  ten  kinds  of  merchandise  in  one  re- 
ceptacle. When  different  kinds  of  merchandise  are  packed  in  one 
container  the  weight  thereof  should  be  carefully  specified. 

Panama. — Practically  all  imports  into  Panama  are  dutiable  ad 
valorem,  and  the  question  of  packing  is  therefore  of  little  im- 
portance. 

Paraguay. — The  rules  given  for  Argentina  apply  also  to 
Paraguay. 

Peru. — In  the  case  of  articles  dutiable  by  weight,  the  basis  for 
levying  duty  may  be  net  weight,  gross  weight,  or  legal  weight. 
The  net  weight  is  obtained  by  deducting  from  the  gross  weight 
the  tare  allowance  indicated  in  the  table  of  tares.  Legal  weight 
includes  the  weight  of  the  merchandise  with  that  of  its  packing, 
but  not  including  the  outer  container.  When  merchandise  dutiable 
on  gross  weight  is  imported  in  the  same  container  with  merchan- 
dise dutiable  on  a  different  basis  or  subject  to  different  rates  of 
duty,  or  with  samples  without  value,  25  per  cent,  is  to  be  added 
to  the  weight  of  such  merchandise  weighed  M'ith  its  immediate 
packing  and  its  share  of  the  straw,  shavings,  or  similar  packing 
material.  In  the  case  of  pianos  and  beds  60  per  cent,  is  to  be 
added.  Eeceptacles  dutiable  at  a  higher  rate  than  the  contents,  as 
well  as  those  containing  free  goods,  are  dutiable  separately. 

Salvador. — The  duty  on  imports  into  Salvador  is  levied  on  gross 
weight,  and  there  is  apparently  no  objection  to  mixed  packing, 
provided  that  the  merchandise  is  properly  declared. 

Uruguay. — The  basis  for  levying  duty  on  goods  dutiable  by 
weight  varies,  some  articles  being  dutiable  on  gross  weight,  some  on 
legal  net  weight,  while  in  some  cases  the  weight  of  the  inner  re- 
ceptacle is  included  in  the  dutiable  weight.  There  is  no  provi- 
sion in  the  tariff  regarding  a  penalty  for  mixed  packing. 

Venezuela. — The  duty  on  imports  into  Venezuela  is  levied  on 
gross  weight.  When  articles  subject  to  different  rates  of  duty  are 
imported  in  the  same  packing,  the  rate  of  the  highest  taxed  article 
is  applied  to  the  entire  shipment. 

How  Tariff  Information  Is  Obtained. — Many  manufacturers  who 
are  sincerely  desirous  of  aiding  their  customers  and  wish  to  obtain 
information  relative  to  tariff  laws  in  the  Latin  American  republics 
are  unaware  of  the  means  of  getting  the  required  information. 

Membership  in  certain  commercial  and  exporting  organizations 


236  EXPORTING  TO  LATIN  AMEEICA 

entitles  the  member  to  tariff  information.  Letters  are  often  ad- 
dressed to  the  consular  oiScers  of  the  United  States,  bat  this  method 
is  the  cause  of  much  delay  and  should  be  avoided.  Export  journals 
are  also  accustomed  to  furnish  information  when  it  is  asked. 

The  "Work  of  the  Bureau  of  Foreign  and  Domestic  Commerce. — 
One  of  the  features  of  the  Bureau  of  Foreign  and  Domestic  Com- 
merce has  been  the  work  of  the  Division  of  Foreign  Tariffs,  from 
which  information  may  be  obtained  very  quickly  regarding  the 
following  subjects:  foreign  customs  duties,  customs  regulations; 
internal  revenue  laws  in  foreign  countries;  regulations  for  com- 
mercial travelers;  requirements  of  foreign  countries  for  consular 
invoices,  law  relating  to  trade-marks,  laws  relative  to  standards 
of  purity  (pure  food  laws),  etc. 

When  information  concerning  these  subjects  is  desired,  the  Bu- 
reau will  be  found  valuable.  Application  should  he  made  through 
the  local  offices,  which  are  listed  on  page  547  of  the  Appendix. 

How  to  Insure  Promptness. — Manufacturers  within  the  districts 
of  the  branch  office  of  the  Bureau  of  Foreign  and  Domestic  Com- 
merce should  address  their  inquiries  regarding  tariff  information 
to  -such  offices.  If  the  information  is  not  on  hand  it  will  be  ob- 
tained more  quickly  than  the  manufacturer  can  get  it,  by  addressing 
American  Consuls  who  may  already  have  supplied  the  information 
that  is  solicited. 

Other  Sources  of  Information. — Much  information  relative  to 
the  tariffs  of  Latin  America  is  contained  in  the  publication  Pack- 
ing for  Export,  Miscellaneous  Series,  Government  Printing  Office. 
The  data  contained  in  that  publication  have  particular  reference 
to  tariffs  as  affecting  packing.  Another  useful  volume  is  Kelly's 
"Customs  Tariffs  of  the  World."  These  will  be  found  listed  on 
page  464. 

How  Requests  for  Information  Should  Be  Made. — The  customs 
and  tariffs  laws,  in  addition  to  the  rules  and  regulations  applying 
thereto,  are  subject  to  so  many  changes  that  where  deponda])le 
information  is  desired,  frequent  inquiries  are  essential.  In  order 
to  serve  his  own  best  interests  the  manufacturer  should  be  ex- 
tremely careful  to  give  the  fullest  possil)le  details  relating  to  the 
inquiry  he  makes.  These  should  be  as  follows :  the  particular  coun- 
try involved;  the  nature  of  the  article,  that  is,  its  component  ma- 
terials, its  trimmings  or  adornments,  if  any;  the  nature  and  use 


TAEIFFS  AND  TAXES  237 

of  the  product;  the  character  of  the  packing  employed,  etc.  The 
more  detailed  the  description,  the  more  complete  and  reliable  the 
information  to  be  gotten. 

The  Publications  of  the  Bureau  of  Foreign  and  Domestic  Com- 
merce.— In  the  course  of  the  work  of  the  Bureau  of  Foreign  and 
Domestic  Commerce,  many  valuable  publications  have  been  issued 
and  are  available.  Tariffs  for  the  more  important  commercial 
countries  have  been  published  and  duties  for  a  particular  class 
of  articles,  either  in  a  selected  list  of  foreign  countries  or  for 
all  foreign  countries,  are  also  to  be  had.  The  Bureau  has  con- 
stantly in  course  of  preparation  publications  showing  the  rates  and 
duties  on  products  of  many  different  characters  and  descriptions. 
In  the  "Daily  Commerce  Beports,"  under  the  heading  of  "Foreign 
Tariffs,"  there  are  reported  proposed  changes  in  the  tariff  laws, 
and  other  legislations  of  foreign  countries. 

Information  Obtainable  from  Foreign  Consuls. — As  the  prepara- 
tion of  papers  covering  shipments  for  export  is  highly  technical, 
and  may  involve  serious  consequences  in  the  payment  of  duties, 
etc.,  American  manufacturers,  when  in  doubt,  should  obtain  fullest 
information  from  the  local  Consul  of  the  country  to  which  the 
shipment  is  to  be  made  or  from  the  Consulate  General  in  New 
York  City.  The  list  of  foreign  consulates  will  be  found  on  page  5221 
of  the  Appendix. 

Other  Means  of  Obtaining  Information. — The  underlying  prin- 
ciples of  foreign  tarill's  are  also  found  in  the  puljlication  "Export- 
ers' Encyclopedia."  This  information  is  printed  at  the  beginning 
of  each  chapter  relating  to  the  individual  countries. 

Custom  House  Regulations. — The  custom  house  regulations  in 
Latin  American  repuljlics  have  been  the  subject  of  much  criticism 
on  the  part  of  American  exporters  who  have  taken  exception  to 
the  strictness  with  which  they  are  enforced.  To  many  shippers 
they  seem  far  too  exacting,  but  those  who  have  had  business  with 
the  American  custom  houses  realize  that  the  conditions  imposed 
by  customs  officials  in  Latin  America  are  often  far  less  difficult 
to  comply  with  than  those  which  obtain  in  the  custom  houses  of 
tlie  T'^nited  States.  Those  xVmerican  houses  wlio  transact  both 
an  import  and  ex)iort  business  rar(>lv  c()m])lain  in  this  particular. 

Need  for  Compliance  with  Regulations. — One  of  the  factors 
which  contribute  to  the  rapid  devolopnient  of  a  business  with  Latin 


238  EXPOETING  TO  LATIN  AMERICA 

America  is  the  observance  of  custom  house  reguhitions  in  the  dif- 
ferent countries,  not  alone  in  regard  to  the  packing  of  the  goods 
and  their  declaration  but  especially  in  the  matter  of  documents 
which  are  exacted.  These  are  different  in  each  of  the  republics, 
but  there  are  certain  general  principles  which  govern  their  mak- 
ing. These  include :  absolute  accuracy  in  declarations ;  promptness 
in  supplying  the  necessary  papers;  a  willingness  to  give  all  the 
information  required;  absolute  cooperation  with  customs  officials. 
If  a  proper  spirit  is  manifested  in  this  regard,  there  is  very 
little  likelihood  of  difficulty.  The  preparation  of  documents  cov- 
ering export  shipments  can  be  greatly  facilitated  by  consulting 
technical  works  devoted  to  this  subject  issued  annually.  Among 
these  may  be  mentioned  the  "Exporters'  Encyclopedia." 

The  "Working  of  the  Drawback  Laww — Many  manufacturers  who 
export  to  Latin  America  do  not  know  that  they  may  find  a  source 
of  considerable  profit  in  the  drawback  law.  "Drawback"  simply 
means  the  obtaining  of  the  rebate  of  the  tariff  duties  paid  on  all 
imported  material  used  in  the  manufacture  of  goods  which  are 
exported.  The  law  provides  that  upon  the  exportation  of  articles 
manufactured  or  produced  in  the  United  States  by  the  use  of 
imported  merchandise  or  materials  on  which  customs  duties  have 
been  paid,  the  amount  of  such  duties  less  one  per  cent,  shall  be 
refunded  as  drawback.  There  are  certain  qualifying  clauses  but 
the  principle  of  the  law  is  eml)odied  in  the  preceding  sentence. 

How  to  Obtain  the  Drawback. — All  that  is  necessary  in  order  to 
obtain  the  drawback  is  for  the  manufacturer  definitely  to  trace 
the  origin  of  the  various  raw  materials  used  in  the  manufacture 
of  his  product,  and  to  prove  that  they  have  been  imported.  There 
are  a  number  of  firms  who  make  a  specialty  of  collecting  draw- 
backs and  to  these  should  be  referred  the  question  of  details.  The 
names  of  those  best  qualified  to  investigate  drawbacks  and  to  look 
after  the  collection  may  be  obtained  from  business  organizations 
or  from  the  New  York  City  directory. 


CHAPTER  XV 

CATALOGS,  PRICE  LISTS,  QUOTATIONS,  DISCOUNTS.     STANDARDS 
OF  MEASURE  AND  VALUE 

Introduction. — So  much  has  been  written  on  the  subject  of  the 
right  and  wrong  sort  of  catalogs  suitable  to  Latin  America  that 
further  discussion  seems  useless,  yet  the  catalog  will  in  the 
future  have  such  an  important  bearing  on  the  business  with  Latin 
America  that  this  work  would  be  incomplete  without  some  obser- 
vations regarding  its  essentials. 

The  Use  of  Catalogs. — Despite  the  fact  that  the  use  of  the  cat- 
alog as  applied  to  Latin  American  business  is  often  discouraged, 
it  occupies  a  very  important  place  in  trade  development.  It 
may  be  used  in  any  of  the  following  ways : 

1.  To  create  prospects  in  a  virgin  territory  either  for  direct 
relations  or  for  the  purpose  of  supplying  leads  to  local  or  general 
agents. 

2.  To  precede  the  visit  of  the  traveling  salesman  whose  work 
is  made  easier  by  the  advance  distribution  of  a  good  catalog  among 
the  proper  merchants. 

3.  To  serve  as  a  means  of  direct  trade  relations  between  the 
manufacturer  and  the  Latin  American  buyer  in  those  places  where 
business  by  means  of  salesmen  or  agents  is  not  practicable. 

4.  To  be  used  as  a  medium  to  obtain  business  through  export 
houses  and  for  the  development  of  a  market  not  previously  en-= 
tered  before  salesmen  are  sent. 

5.  To  aid  dealers  in  placing  duplicate  orders  after  initial  pur- 
chases have  been  made. 

This  is  the  most  effective  use,  especially  if  catalogs  are  properly 
compiled. 

Some  Latin  Americans  Are  Disinclined  to  Use  Catalog. — Many 
American  houses  are  responsible  for  the  disinclination  of  Latin 
American  dealers  to  use  catalogs  more  freely.  In  innumerable 
instances  their  experiences  in  ordering  from  catalogs  have  been 

239 


240  EXPORTING  TO  LATIN  AMERICA 

very  unsatisfactory.  Because  of  erroneous  or  misleading  descrip- 
tions, as  well  as  outright  substitutions,  merchandise  has  often 
proved  undesirable,  and  despite  the  fact  that  heavy  outlays  had 
been  made  for  duty  and  freight,  the  American  shipper  has  failed 
to  make  reparation  when  called  to  account. 

A  House  Judg^ed  by  Its  Catalog. — When  a  catalog  is  decided 
upon,  the  importance  of  adequate  publication  cannot  be  too 
strongly  emphasized.  The  Latin  American,  with  his  keen  apprecia- 
tion of  business  methods,  bases  his  opinion  of  a  manufacturer  upon 
the  appearance  of  his  printed  matter  and  particularly  of  his  cata- 
log. If  the  latter  is  compiled  with  great  care,  he  will  be  much 
more  easily  influenced  to  place  an  order.  It  is  for  this  reason  that 
the  appearance  of  the  book  should  be  attractive  and  substantial 
enough  to  win  the  confidence  of  the  Latin  American  merchant. 

The  Use  of  Spanish,  Portuguese,  or  French. — Obviously  a  catalog 
for  circulation  in  Latin  America  should  be  in  the  language  of  the 
country  to  which  it  is  sent.  With  the  exception  of  Haiti  where 
French  is  spoken,  and  Brazil  where  Portuguese  is  the  language  of 
the  people,  Spanish  should  be  used  in  the  preparation  of  catalogs 
mailed  to  the  Latin  American  republics.  The  average  American 
manufacturer  would  not  be  inclined  to  buy  of  a  French  or  German 
manufacturer  from  whom  he  received  a  catalog  in  French  or 
German,  containing  not  only  technical  terms  with  which  he  was 
absolutely  unfamiliar  but  also  language  which  he  did  not  under- 
stand, a  system  of  measurements  which  he  did  not  use,  and  quota- 
tions in  money  which  was  absolutely  foreign  to  him.  This  is  cited 
as  an  example  of  the  effect  of  the  average  American  catalog  on 
a  Latin  American  buyer,  and  is  one  of  the  reasons  why  catalogs 
so  compiled  are  extremely  inefficient. 

What  a  Catalog  Should  Contain. — The  manufacturer  who 
desires  to  build  a  business  with  Latin  America  and  is  conscientious 
in  supplying  details  should  be  certain  that  his  quotations  are 
perfectly  clear  on  the  following  basic  points,  in  order  that  the 
Latin  American  merchant  may  not  have  to  waste  time  in  corre- 
spondence or  indulge  in  guesswork: 

1.  Exact  prices  in  American  gold.  These  should  be  accompanied 
by  the  equivalents  in  the  money  of  the  country  to  which  the  catalog 
is  sent.  If  in  a  currency  subject  to  fluctuation,  the  rate  of  ex- 
change at  which  the  calculation  is  made  should  be  stated. 


CATALOGS  AND  QUOTATIONS  541 

2.  Simple  discounts,  preferably  from  a  general  price  list  issued 
separately;  one  to  wholesalers,  one  to  retailers. 

3.  If  the  quotation  is  made  free  on  board  vessel,  it  should  be 
stated  at  what  port  the  quotation  is  effective. 

4.  If  quotation  is  made  f.o.b.  factory,  it  should  be  accompanied 
by  an  exact  memorandum  showing  cost  of  freight  from  interior 
point  to  port,  cartage,  lighterage  charge  (if  any),  and  other  ex- 
penses to  which  the  shipment  may  be  subjected. 

5.  All  calculations  relating  to  measurements,  dimensions, 
weight,  and  values  should  be  reduced  to  the  metric  system.  This 
is  a  very  simple  matter  and  requires  only  slight  effort.  It  is  par- 
ticularly desirable  because  of  the  confusion  resulting  from  the 
various  conflicting  standards.  The  simplicity  of  the  metric  system 
and  its  employment  in  all  Latin  American  countries  makes  this 
essential. 

6.  The  terms  on  which  goods  are  offered  should  be  given,  and  if 
offered  on  open  account,  details  regarding  the  manner  and  date  of 
payment  should  be  embodied  in  a  letter  sent  separately. 

7.  Prices  should  preferably  include  charges  for  packing.  If 
an  extra  charge  for  this  item  is  essential,  it  should  be  stated  in 
detail. 

8.  It  is  desirable  that  quotations,  particularly  of  commodities 
whereon  freight  charges  are  a  serious  consideration,  be  made  c.i.f. 
port  of  entry  in  the  Latin  American  country.  This  applies  par- 
ticularly to  specific  quotations  asked  on  certain  articles. 

9.  The  exact  shipping  weights,  including  the  weight  of  the 
article  itself,  plus  packing,  must  be  stated. 

10.  Weights  should  be  given  both  net  and  boxed.  The  cubic 
measurements  of  the  cases  should  also  be  included. 

11.  Each  article  should  be  furnished  with  a  code  name.  This 
will  save  time  and  money  when  the  cable  or  telegraph  is  used  for 
orders. 

12.  The  merchant  should  be  assured  that  packing  and  shipping 
directions  will  be  followed  to  the  letter. 

13.  The  catalog  should  have  a  proper  index.  This  should  be  in 
Spanish  with  the  English  equivalents  to  permit  easy  and  quick 
reference. 

Full  information  regarding  the  means  of  obtaining  weights, 
measures,  and  values  for  Latin  America  will  be  found  on  page  527. 


542  EXPORTING  TO  LATIX  zVMERICA 

The  Use  and  Value  of  a  Supplement. — Many  manufacturers  who 
contemplate  doing  business  with  Latin  America  find  that  at  the 
outset  a  translation  of  their  entire  catalog  would  involve  too  great 
an  expense.  This  difficulty  may  easily  be  overcome  and  good 
results  achieved  by  the  use  of  a  key  or  supplement.  The  number 
of  articles  described  may  be  limited  or  extended  as-  circumstances 
dictate.  The  manufacturer  by  a  preliminary  study  can  determine 
upon  the  particular  items  among  his  products  which  will  prove 
most  salable,  and  confine  his  supplement  or  catalog  thereto.  The 
supplement  may  even  be  in  skeleton  form  with  limited  descrip- 
tion of  the  principal  features  of  the  catalog  given  in  Spanish  and 
accompanied  by  the  prices. 

Catalog  Making  a  Science. — The  development  of  export  trade 
has  become  highly  specialized  and  in  no  department  is  it  more 
marked  than  in  that  of  obtaining  business  by  means  of  the  catalog. 
No  matter  whether  a  supplement  or  an  entire  catalog  is  translated 
it  is  a  wise  policy  to  employ  only  translators  who  know  their 
business  perfectly.  For  instance,  in  the  case  of '  technical  goods, 
only  men  with  technical  experience  should  be  engaged.  If  a  cata- 
log of  electrical  specialties  is  desired  it  is  highly  important  that  a 
man  absolutely  familiar  with  trade  names  in  the  electrical  field 
be  engaged  to  do  the  work.  This  shoidd  not  be  left  to  a  translator 
who  perhaps  is  familiar  only  with  the  dry  goods  or  other  business 
entirely  distinct  from  the  electrical  field. 

Features  to  Emphasize. — The  same  general  principles  govern 
the  making  of  catalogs  for  Latin  America  as  in  the  United 
States.  The  catalog  should  not  contain  merely  statements  of  price 
and  technical  description.  It  is  important  that  the  strongest,  most 
convincing  detailed  selling  arguments  shall  be  used.  As  the  use 
of  articles  listed  in  a  catalog  varies  so  greatly,  the  selling  points 
should  be  those  which  -are  pertinent  to  the  different  countries. 

The  following  are  concrete  examples : 

If  the  manufacturer  is  able  to  supply  a  product  in  the  sale  of 
which  the  weight  and  transportation  are  important  factors,  they 
should  be  dwelt  upon.  If  the  packing  is  different  from  the  ordi- 
nary (for  instance,  adapted  to  peculiar  tropical  conditions),  this 
advantage  should  be  emphasized.  These  are  features  which  will 
be  of  interest  to  the  prospective  buyer  and  must  be  brought  to  his 
attention  forcefully. 


CATALOGS  AXD  QUOTATIOXS  243 

Necessity  for  Stating-  All  Advantages. — A  catalog,  to  be  a  sales 
producer,  should  fulfill  the  functions  of  a  salesman.  It  should 
state  clearly  and  logically  the  advantages  and  selling  features  of 
the  article  illustrated.  The  care  with  which  this  feature  is  worked 
out  will  determine  its  success  or  failure.  The  greatest  stress  should 
be  laid  on  the  quality,  efficiency,  or  individuality  of  the  goods,  and 
not  upon  cost.  This  is  so  essential  because  in  almost  every  in- 
stance articles  imported  into  Latin  America  are  used  by.  the  classes 
that  can  afford  to  pay  for  them,  and  foreign  business  can  far  more 
easily  be  established  on  the  basis  of  quality  than  on  mere  cheapness. 

How  to  Feature  Selling  Points, — In  the  preparation  of  catalogs 
sent  to  Latin  America  it  will  be  found  profitable  to  insist  upon 
the  very  highest  sales  efficiency  in  order  to  stimulate  the  importer's 
interest.  It  is  necessary  to  state  in  simple  but  convincing  terms  the 
"talking"  points  of  the  article  .  illustrated,  that  the  prospective 
buyer  may  visualize  it  and  understand  thoroughly  its  superiority, 
durability,  workings,  or  other  features.  It  is  desirable  to  give  such 
a  complete,  accurate  description  that  there  may  be  no  need  for 
fvirther  inquiry  and  correspondence,  which  is  time  consuming  and 
expensive. 

Letters  That  Accompany  Catalogs. — Xo  catalog  should  be  mailed 
to  Latin  America  without  an  accompanying  letter  and  it  should  be 
planned  that  both  arrive  simultaneously.  If  properly  constructed 
the  letter  will  gain  the  attention  of  the  recipient  and  insure. the 
opening  of  the  catalog.  Many  of  the  features  embodied  in  the 
successful  domestic  sales  letters,  if  skillfully  adapted  to  the 
Latin  American  viewpoint,  will  prove  even  more  successful  in 
that  field  than  at  home.  However,  it  is  absolutely  essential  to 
include  all  details  necessary  to  a  clear  understanding  of  the 
proposition. 

Avoidance  of  Misleading  Terms. — It  is  not  alone  upon  the  gen- 
eral preparatioji  of  a  catalog  that  its  success  is  based,  but  it  is  of 
equal  importance  that  it  be  easily  understood.  For  this  reason 
the  use  of  American  trade  terms  or  business  expressions  should  be 
avoided.  The  compiler  sliould  have  in  mind  the  attitude  of  the 
Latin  American,  and  the  greater  the  simplicity  and  the  more 
forceful  the  manner  in  which  the  strong  selling  points  are  empha- 
sized, the  greater  will  be  the  results  achieved.  Enough  care  should 
be  taken  to  include  everv  bit  of  detaile(l  information  that  will  be 


244  EXPORTING  TO  LATIN  AMERICA 

of  value.  Generalities  should  be  avoided.  Conscientiousness  in 
the  preparation  of  a  catalog  will  pay  for  itself  many  times  over. 

The  Importance  of  Details  in  Catalogs. — With  every  article 
should  be  stated  the  exact  quality,  size,  colors,  finish,  capacity,  and 
weight  of  commodities  that  are  packed  in  a  case  or  package.  The 
weights  of  the  packing  should  also  be  stated  in  order  that  a  mer- 
chant may  make  his  calculations  of  duty  intelligently.  If  extra 
charges  of  any  nature  are  to  be  made,  they  should  also  be  men- 
tioned. 

The  Use  of  the  Metric  System. — Since  the  standard  of  measure- 
ment and  value  in  Latin  America  is  the  metric  system,  the  Eng- 
lish or  iVmerican  system  makes  it  extremely  difficult  for  the  Latin 
American  business  man  to  understand  quotations  unless  made  in 
the  metric  system.  This  is  fully  outlined  in  a  pamphlet  listed  on 
page  493  of  the  Appendix. 

Reasonable  Prices  Advisable. — Many  business  men  look  upon 
Latin  American  trade  as  a  means  to  larger  profits  than  the  domes- 
tic market  affords.  The  law  of  supply  and  demand  naturally  gov- 
erns transactions  with  the  southern  republics,  but  the  principle 
of  a  fair  profit  in  order  to  insure  the  very  largest  consumption 
possible  should  influence  the  making  of  prices.  Under  all  condi- 
tions the  exporter  must  consider  competition,  not  only  American 
but  European,  and  must  remember  that  the  Latin  Americans  are 
excellent  judges  of  values. 

Other  Essentials  in  Quoting  Prices. — Prices  should  invariably  be 
quoted  to  appear  most  attractive.  Even  when  the  manufacturer 
adds  an  additional  percentage  of  profit  to  his  foreign  prices,  he 
should  endeavor  to  make  his  quotations  seem  the  most  reasonable 
possible.  Only  by  so  doing  can  he  enlist  the  interest  of  the  Latin 
American  buyer.  His  European  competitors  understand  these  de- 
tails and  it  is  frequently  this  competition  which  is  the  most  diffi- 
cult to  meet. 

Meaning  of  Currency  Signs.— In  correspondence  with  dealers 
in  Latin  America,  American  manufacturers  who  use  the  dollar 
sign  should  specify  that  it  is  the  American  dollar  sign  which  is 
meant.  The  dollar  sign  as  used  by  Americans,  particularly  those 
who  make  ({uotations  in  foreign  money,  is  sometimes  misleading. 
The  quotation  $4.00,  for  instance,  sent  to  a  Peruvian  merchant, 
may,  unless  otherwise  specified,  be  interpreted  by  him  to  mean  four 


CATALOGS  AND  QUOTATIONS  246 

soles,  just  one-half  the  value  of  five  American  dollars.  Where 
quotations  are  in  gold,  the  fact  should  be  so  stated,  and  followed 
by  the  word  "American,"  Oro  Americano.  If  at  all  possible,  quo- 
tations should  be  made  in  the  currency  of  the  country  wherein  trade 
is  desired,  but  if  this  is  not  feasible  the  aforementioned  system 
should  be  followed. 

The  Importance  of  Durable  Catalogs. — Catalogs  should  be  thor- 
oughly practical  for  contiiiued  use  and  reference  and  constructed 
to  withstand  the  ravages  of  varying  climates.  Particularly  is  this 
so  of  catalogs  to  be  circulated  in  the  tropics,  which  should  be  strong 
durable  books  printed  in  large  clear-faced  type  on  a  good  quality  of 
paper.  The  use  of  fancy  designs  and  very  faint  ink  should  be 
avoided  because  of  the  difficulty  of  reading  them  in  the  glaring 
sun. 

The  Value  of  a  Convenient  Catalog. — In  order  to  be  most  useful, 
catalogs  should  be  of  a  size  which  will  make  them  available  for 
reference  and  filing.  Odd  shapes,  lengths,  and  dimensions  should 
be  discouraged,  as  the  catalog  most  likely  to  be  preserved  is  one 
that  can  be  easily  filed.  Whenever  possible  catalogs  should  be 
bound  in  cloth.  The  back  should  be  sufficiently  stiff  so  that  when 
stood  on  edge  it  may  be  kept  upright. 

The  Value  of  Good  Illustrations. — As  the  chief  means  of  giving 
the  fullest  information  regarding  a  manufacturer's  products  is  the 
illustrations,  the  necessity  for  proper  display  is  apparent.  Only 
a  shortsighted  policy  would  influence  the  manufacturer  to  use 
cheap  or  inadequate  cuts,  since  the  expense  of  printing  a  page  is 
equally  great  no  matter  what  the  efficiency  of  the  illustrations.  The 
most  perfect  illustrations  which  show  the  article  quoted  to  the  best 
advantage  should  be  used.  This  will,  in  the  long  run,  prove  by 
far  the  most  successful  policy,  for  notwithstanding  a  heavier  initial 
outlay  the  results  will  easily  compensate  therefor. 

The  Importance  of  the  Wrapper. — No  matter  how  carefully  a 
catalog  is  compiled  and  how  tastefully  it  is  printed,  unless  it  is 
inclosed  in  a  proper  wrapper  to  withstand  the  rough  usage  to 
which  it  is  subjected  in  the  mails,  it  is  likely  to  fail  in  its  purpose. 
It  is  for  this  reason  that  the  outer  ^\Tappe^  or  covering  should 
be  of  the  most  substantial  sort.  A  return  card,  printed  in  Span- 
ish, providing  for  the  return  to  the  sender  in  case  of  nondelivery, 
should  invariably  be  printed  on  the  envelope.     When  valuable, 


;'i6  EXPORTING  TO  LATIN  AMERICA 

cloth-covered  catalogs  are  dispatched  to  interior  points  Avhich  are 
difficult  of  access,  the  use  of  oilcloth  wrapping  is  advisable.  This 
will  serve  to  protect  the  book  against  possible  damage  from  rains, 
or  immersions  in  water  when  streams  are  forded. 

Why  Prices  and  Terms  Should  not  Be  Printed. — It  is  not  alone 
in  the  advertising  matter  but  in  the  catalogs  also  that  retail  prices 
and  terms  should  not  be  stated.  Particularly  should  the  retail 
prices  common  in  the  United  States  never  be  placed  on  the  goods 
themselves.  The  reason  for  this  is  apparent  when  it  is  considered 
that  the  tariffs  are  high  and  the  freight  likewise  an  extremely 
important  item,  especially  for  interior  points.  This  makes  the 
prices  of  articles  to  the  consumer  vary  greatly,  not  alone  in  the 
different  republics  but  even  within  one  country.  As  an  instance 
may  be  cited  Brazil,  with  a  coast  line  of  5000  miles,  and  interior 
places  three  and  four  weeks  distant  from  Rio  de  Janeiro.  The 
terms  should  be  stated  only  in  individual  communications  to  the 
importers. 

Prices  and  Discounts  Indispensable  to  Consuls. — Many  American 
manufacturers  find  it  desirable  to  send  their  catalogs  and  printed 
matter  to  the  American  Consuls  in  the  Latin  American  countries. 
This  has  sometimes  led  to  business,  and  it  at  least  serves  to  make 
it  possible  for  the  Consul  to  know  of  the  existence  of  a  manu- 
facturer, should  it  come  to  his  knowledge  that  the  particular  class 
of  manufacture  is  required.  When  catalogs  for  this  purpose  are 
forwarded,  they  should  invariably  be  accompanied  by  a  letter  in 
which  the  Consul  is  given  full  information  regarding  the  exact 
net  prices  or  discounts.  Otherwise  it  may  happen  that  at  least  two 
months'  time  may  elapse  before  a  definite  quotation  can  be  made. 

Necessity  for  Maintaining  Prices  and  Discounts. — It  is  ex- 
tremely important,  in  trading  with  Latin  American  dealers  and 
in  cataloging  goods,  to  fix  prices  which  may  be  maintained  for  a 
considerable  length  of  time.  While  it  is  desirable  in  many  in- 
stances to  furnish  separate  price  sheets,  if  conditions  necessitate 
this  they  should  be  so  fastened  in  the  back  or  front  of  the  catalog 
that  they  may  not  be  easily  lost.  Because  of  the  fact  that  price 
lists  are  misplaced  so  frequently,  many  merchants  prefer  to  give 
in  the  catalog  a  price  wbich  is  subject  at  the  most  to  two  dis- 
counts— one  to  the  wliolosah'r.  and  one  to  the  retailer. 

Separate  Price   Sheets  Advisable. — Because   of   the   numerous 


CATALOGS  AND  QUOTATIONS  247 

classes  of  dealers  in  the  Latin  American  countries  it  is  advisable 
that  prices  and  discounts  be  printed  separately.  To  insure  the 
minimum  risk  and  least  possible  embarrassment  to  the  recipient, 
such  sheets  should  be  mailed  apart  from  the  catalog  and  care 
should  be  taken  to  provide  for  several  profits  to  different  classes 
of  dealers,  importers,  or  distributors,  local  agents,  etc.  Manu- 
facturers who  must  meet  this  condition  at  home  will  have  no  diffi- 
culty in  doing  so  in  the  Latin  American  republics. 

Other  Essentials  in  Quoting-  Prices. — If  it  is  desired  to  expedite 
trade  with  Latin  America,  prices  should  be  quoted  f.o.b.  (free  on 
board  ship).  This  is  particularly  important  on  some  commodities, 
inasmuch  as  the  Latin  American  dealer  has  no  means  of  knowing 
the  cost  of  freight  from  the  point  of  origin  in  the  interior  to  the 
port  of  embarkation,  the  cartage  to  the  ship,  the  lighterage,  etc. 
In  some  instances  merchandise  is  loaded  direct  from  freight  car 
to  vessel,  and  in  other  instances  lighterage  charge  must  be  paid. 
The  manufacturer  who  simplifies  calculations  for  his  clients  will 
find  it  possible  to  increase  his  business  materially. 

Precautions  Necessary  in  Quoting  Prices  and  Discounts. — It  is 
very  important,  when  quoting  prices  and  discounts  to  inquirers,  that 
they  be  given  only  to  bona  fide  prospective  buyers.  If  a  catalog 
is  used,  the  discounts  should  be  quoted  in  a  confidential  letter  with 
instructions  that  they  be  used  with  the  utmost  reserve.  No  cata- 
logs should  be  mailed  to  merchants  who  make  inquiries  without 
very  definite  prices  and  discount  quotations,  as  otherwise  they  are 
utterly  useless. 

Offers  with  Time  Limits  not  Desired. — Many  American  manu- 
facturers fail  to  take  into  consideration  the  time  required  for 
correspondence  to  reach  their  Latin  American  customers,  and  for 
the  latter  to  consider  the  advantages  of  a  quotation.  For  this  rea- 
son, when  a  time  limit  is  placed  in  circulars  which  contain  special 
offers,  the  time  should  be  calculated  very  carefully  with  reference 
to  the  places  to  which  it  is  sent. 

Simple  Discounts  Preferable. — One  of  the  complaints  most  fre- 
quently made  against  American  manufacturers  is  the  use  of  an 
involved  s)'stem  of-  discounts.  The  Latin  x\merican  dealer,  because 
of  the  necessity  of  making  calculations  for  freight,  duty,  surtaxes, 
and  agent's  charges  incidental  to  the  importation  of  goods,  objects 
to  receiving  a  quotation  based  on  a  discount  of  30,  25,  10,  10  and 


248  EXPORTING  TO  LATIN  AMERICA 

5,  or  similar  discounts.  In  making  a  quotation,  the  greatest  sim- 
plicity should  be  encouraged,  and  the  dealer  should  not  be  expected 
to  accustom  himself  to  the  intricate  American  system  of  arriving 
at  net  prices. 

The  English  and  other  shippers  to  Latin  America  generally  have 
not  more  than  two  discounts,  and  usually  only  one.  When  the  same 
catalog  is  to  be  used  for  circulation  among  wholesalers,  retailers, 
and  consumers,  the  utmost  care  should  be  taken  in  the  preparation 
of  the  price  list.  This  should  be  so  arranged  that  one  discount 
from  the  price  will  indicate  the  cost  to  the  wholesaler,  another 
the  discount  to  the  retailer,  and  the  third,  or  list  price,  the  price 
to  the  consumer. 

Need  for  Care  in  Preparing  Price  Lists. — The  annoyance  caused 
by  multiplicity  of  discounts  is  increased  by  the  differences  in 
quotation  from  a  standard  set  of  prices  on  the  same  class  of 
merchandise  by  two  or  more  manufacturers.  This  is  particularly 
exasperating  to  dealers  who  receive  a  quotation  at  a  certain  time 
and  ascertain  upon  forwarding  an  order,  only  a  short  time  there- 
after, that  an  entirely  new  combination  of  discounts  has  superseded 
the  former  one. 

The  Use  of  Codes  in  Catalogs. — The  importers  of  Latin  America 
will  be  greatly  aided  by  the  publication  in  the  manufacturer's  cata- 
log of  a  simple  code  which  not  only  refers  to  items  described  but 
likewise  provides  a  series  of  word  combinations  which  make  easy 
the  placing  of  orders  or  duplicate  orders.  Such  combinations  can 
be  worked  out  by  code  experts,  or  code  words  relating  to  items 
illustrated  can  be  easily  used  in  connection  with  the  more  promi- 
nent ca1)le  codes,  which  are  very  voluminous. 

Proper  Distribution  of  Catalogs. — It  is  not  alone  in  the  careful 
compilation  of  a  catalog  that  its  success  consists.  This  will  be 
dependent  largely  upon  its  distribution.  No  matter  how  care- 
fully compiled  and  translated,  nor  how  beautifully  illustrated, 
the  value  of  a  book  may  be  lost  if  it  fails  to  reach  the  proper  mer- 
chants. The  distribution  of  a  catalog,  particularly  if  heavy  and 
expensive,  should  be  considered  with  the  greatest  caution  and  care. 

In  many  cases  catalogs  have  been  sent  at  the  mere  request  of 
a  consumer  to  whom  were  given  the  quotations  that  should  only 
have  been  allowed  to  the  dealer.  Every  inquiry  should  be  care- 
fully weighed  and  catalogs  should  never  be  sent  indiscriminately. 


CATALOGS  AND  QUOTATIONS  249 

The  rules  outlined  in  Chapter  IX,  relating  to  mailing,  should  be 
absolutely   adhered   to. 

The  Distribution  of  Technical  Catalog's. — Manufacturers  of 
technical  machinery  and  apparatus  will  find  it  advantageous  to 
place  their  catalogs,  booklets,  and  advertising  matter  in  the  hands 
of  practical  engineers  and  technical  experts  of  various  lines. 

Organizations  of  such  experts  exist  in  the  more  important  cities, 
and  to  them  should  be  sent  the  matter,  as  heretofore  suggested. 
An  association  of  this  character  is  the  Institute  of  Engineers  of 
Chile,  whose  address  is  Instituto  de  Inginieros  de  Chile,  Santiago, 
Chile.  Another  is  the  Society  of  Mining  Engineers,  Sociedad 
Nacional  de  Mineria,  also  at  Santiago.  Names  of  similar  organi- 
zations may  be  obtained  from  the  Department  of  Foreign  and  Do- 
mestic Commerce. 

Duty  Exacted  on  Catalogs. — In  some  of  the  Latin  American 
countries,  for  instance  Brazil,  catalogs  in  bulk  that  are  destined 
exclusively  for  advertising  purposes  and  are  imported  for  free 
distribution  are  compelled  to  pay  a  duty  oi  SjA  cents  per  pound. 
When  catalogs  are  sent  singly  by  mail  they  are  exempted  from  this, 
unless  the  number  sent  by  the  consignor  in  any  one  mail  is  suffi- 
cient to  be  considered  a  shipment  in  commercial  quantities.  For 
that  reason  a  mailing  should  be  distributed  over  a  sutlicient  length 
of  time  to  insure  its  carriage  on  separate  steamships. 

Why  Catalogs  Are  Often  Detained. — Lithographed  advertising 
matter  is  likewise  subject  to  duty  when  weighing  more  than  four 
ounces.  Catalogs  for  Brazil  should  be  printed  in  as  small  a  form 
as  possible,  preferably  in  separate  sections  rather  than  in  one  bulky 
volume.  On  the  outside  label  they  should  be  marked  Catalogo  sem 
valor. 

Proper  Quotations  Aid  Sales. — The  development  of  business  with 
Latin  America  can  be  greatly  aided  by  painstaking  attention  to 
details.  In  no  other  phase  of  export  business  is  this  more  essential 
than  in  the  matter  of  price  quotations.  This  emphasizes  the  neces- 
sity for  a  thorough  understanding  of  the  terms  used.  The  tech- 
nical abbreviations  are  the  following:  c.i.f.,  f.o.b.,  f.a.s.,  c.i.f.&e. 

Much  correspondence  and  time  can  be  saved  if  quotations  are 
made  c.i.f.  destination,  inasmuch  as  merchants  are  not  inclined 
to  waste  their  time  with  propositions  which  they  cannot  under- 
stand and  which  do  not  show  them  some  particular  advantage. 


250  EXPORTING  TO  LATIN  AMEEICA 

In  many  places  it  is  very  difficult  for  importers  to  obtain  informa- 
tion regarding  the  cost  of  freight,  while  on  the  other  hand,  it  is 
easy  for  American  manufacturers  to  make  quotations  for  merchan- 
dise "laid  down."  Where  freight  is  an  important  factor  and  prices 
are  only  quoted  f.o.b.  at  an  interior  American  point,  they  are  given 
scant  consideration. 

The  Meaning  of  Quotations  Made  C.I.F. — The  generally  ac- 
cepted definition  of  the  abbreviation  c.i.f.  in  the  Latin  American 
trade  is,  "cost,  insurance  and  freight."  When  a  price  is  quoted 
with  this  abbreviation  it  is  understood  that  the  price  includes  the 
value  of  the  product  plus  the  freight  to  the  place  stated  and  plus 
the  cost  of  insuring  the  goods  against  marine  risk.  The  necessity 
for  obtaining  this  quotation  is  apparent  for  the  reason  that  marine 
insurance  covers  the  loss  of  goods  while  on  shijoboard,  inasmuch  as 
the  steamship  lines,  when  issuing  a  bill  of  lading,  disclaim  there- 
upon any  liability  for  loss  of  the  property.  This  is  in  contradis- 
tinction to  the  responsibility  of  a  railroad  company  which  is  liable 
except  for  "acts  of  God."  Thus  in  c.i.f.  quotations  the  shipper 
pays  the  charges  or  freight  and  insurance  but  assumes  no  other 
responsibility. 

The  Desirability  of  C.I.F.  Quotations. — The  advantages  of 
c.i.f.  quotations  are  obvious,  as  the  Latin  American  exporter  is  at 
a  loss  to  determine  freight  charges,  particularly  the  cost  of  trans- 
portation from  an  inland  port  to  the  port  of  embarkation.  In  mak- 
ing these  quotations  there  should  be  taken  into  account  the  mini- 
mum rates  of  steamship  companies,  which  are  excessive  for  small 
shipments.  The  manufacturer  must  also  take  into  consideration 
the  gross  weight  of  the  article  on  which  he  quotes,  besides  the  cubic 
measurements.  The  former  determines  the  railroad  freight,  the 
latter  the  ocean  freight.  It  is  desirable  in  quoting  c.i.f,  that  the 
manufacturer  ascertain  the  unit  that  is  covered  by  the  minimum 
bill  of  lading  issued  l>y  the  steamship  company.  By  this  means  the 
cost  of  an  article  to  the  dealer  is  easily  arrived  at.  When  a  quota- 
tion is  made  c.i.f.  port  of  entry,  the  manufacturer  should  be  care- 
ful to  state  whether  the  quotation  includes  tlie  duty.  If  he  is 
unfamiliar  with  the  tariff  assessed  aiid  if  he  wishes  to  be  perfectly 
safe,  his  quotation  shouUl  read:  "Cost  of  goods,  c.i.f.,  port,  duty 
for  account  of  purchaser." 

It  should  always  be  made  cl(>ar  whether  the  quotation  is  madi; 


CATALOGS  AND  QUOTATIONS  251 

"delivered  at  a  given  port,"  or  whether  this  is  to  be  interpreted 
"c.i.f.  to  the  port."  In  this  respect  nothing  should  be  left  to  the 
imagination,  as  misunderstandings  easily  arise  and  losses  are  often 
placed  upon  the  shipper. 

The  quotation  c.i.f.  and  e.  means  "and  exchange,"  being  used 
when  the  shipper  assumes  the  expense  of  the  exchange.  • 

The  Meaning  of  F.O.B.  Quotations. — In  this  quotation  the 
shipper  pays  all  charges  and  is  responsible  until  delivery  of  the 
shipment  has  been  made.  In  quoting  to  a  Latin  American  dealer 
f.o.b.  (freight  on  board),  the  manufacturer  should  be  careful  to 
state  whether  the  price  is  based  f.o.b.  freight  cars  at  the  interior 
point  of  origin  or  f.o.b.  steamship  at  port  of  embarkation.  When 
a  quotation  is  made  f.o.b.  interior  point,  the  merchant  should  also 
be  advised  of  the  exact  cost  of  freight  from  factory  to  port,  the 
charges  for  getting  it  on  board  the  steamer,  including  the  transfer, 
lighterage,  etc. 

F.o.b.  quotations  are  frequently  desired  by  Latin  American 
importers  who  have  their  own  agents  in  the  port,  generally  New 
York  City,  and  are  fully  aware  of  the  charges  that  will  be  made 
for  handling  a  shipment.  In  order  that  the  Latin  American  buyer 
shall  have  every  advantage,  the  manufacturer  should  seek  to  obtain 
from  various  sources  (freight  forwarders,  foreign  freight  agents  of 
railroad  companies,  etc.)  competitive  quotations,  and  furnish  not 
only  quotations  f.o.b.  port  but  also  f.o.b.  steamer.  This  applies 
with  equal  force  to  quotations  made  c.i.f.  port  of  entry  in  Latin 
America. 

The  F.O.B.  Quotations  Via  New  York. — In  shipping  goods  to 
Latin  American  countries  by  way  of  seaboard  in  the  United  States, 
the  rates  quoted  by  railroad  companies  include  the  placing  of  the 
merchandise  on  board  the  steamship.  They  also  include  the  re- 
moval of  freight  from  the  cars  to  the  steamship  itself  and  apply 
to  practically  all  classes  of  freight  except  certain  tonnage  which 
can  only  be  lifted  by  cranes  and  for  which  specific  charge  is  made. 

The  same  custom  is  followed  in  New  York  City  in  the  case  of 
carload  shipments  which  come  from  interior  points,  and  no  charge 
is  made  for  the  cost  of  carrying  them  from  the  railroad  stations 
to  the  steamsliip  in  lighters. 

The  complaints  made  by  many  Latin  American  buyers  concern- 
ing the  items  specified  on  invoices  received  from  the  manufacturers 


252  EXPORTING  TO  LATIN  AMERICA 

for  preparation  of  bills  of  lading,  drayage  or  cartage,  handling,  cost 
of  ferrying,  expense  of  lighterage,  etc.,  can  be  obviated  if  the 
shipper  in  the  interior  will  give  personal  attention  to  the  forward- 
ing of  shipments  in  less  than  carload  lots.  The  advantage  of  a 
reliable  forwarding  agent,  with  whom  definite  arrangements  can 
be  made,  here  again  is  apparent. 

The  Meaning  of  F.A.S.  Quotations. — The  quotation  "freight 
along  side"  is  rather  uncommon  and  requested  very  rarely.  It 
is  sometimes  asked  by  Latin  American  importers,  particularly  those 
dealing  in  very  bulky  or  heavy  tonnage,  who  find  it  advantageous 
to  have  their  own  representative  in  New  York  to  look  after  the 
loading.  Certain  classes  of  freight  require  special  machinery  for 
the  purpose  of  getting  them  aboard  steamship.  The  machinery  is 
usually  a  large  crane  and  when  packages  weighing  in  excess  of  two 
to  five  tons  are  raised,  a  charge  for  this  service  is  made  in  addition 
to  the  railroad  rate.  When  a  quotation  is  made  f.a.s.  it  is  under- 
stood that  the  Latin  American  buyer  will  pay  this  charge,  which 

in  contradistinction  to  a  quotation  f.o.b. 

The  responsibility  of  the  shipper  is  limited  to  the  delivery  to 
steamer,  lighter,  or  pier  as  may  be  agreed.  No  other  risks  are 
assumed  by  him. 

How  Quotations  Should  Be  Made. — It  is  of  the  utmost  impor- 
tance in  quoting  c.i.f.  to  obtain  exact  figures.  These  can  be  gotten 
by  the  various  means  outlined.  No  shipment  should  be  made  with- 
out a  definite  request  for  a  rate,  and  if  application  is  made  through 
various  sources  (i.e.,  foreign  freight  agents  of  railroad  companies, 
freight  forwarding  agencies,  forwarding  departments  of  express 
companies),  the  result  will  be  to  the  advantage  of  the  shipper. 
This  is  due  to  the  fact  that  at  certain  periods  some  steamship 
lines  are  in  a  position  to  quote  better  rates  than  competitors  be- 
cause of  a  greater  amount  of  room ;  besides  which  competition  may 
likewise  cut  an  important  figure. 

Almost  invariably  steamship  lines  fix  a  minimum  charge  for  the 
issuance  of  a  bill  of  lading,  charging  $5.00,  $7.00,  or  $9,00  each,  as 
the  case  may  be.  In  such  instances  the  charge  is  made  regardless 
of  the  size  of  the  case,  provided  it  is  less  than  the  minimum  of  cubic 
feet  fixed  by  the  officials  of  the  steamship  lines  for  a  minimum  bill 
of  lading.  Thus,  if  this  minimum  is  55  cubic  feet,  and  two  cases 
are  tendered,  the  cubic  contents  of  which  measure  only  30  cubic 


CATALOGS  AND  QUOTATIONS  253 

feet,  the  charge  will  remain  the  same.  It  is  highly  essential,  there- 
fore, that  manufacturers,  when  making  foreign  shipments,  should 
seek  to  obtain  the  lowest  possible  minimum  bill  of  lading  and 
should  endeavor  to  make  shipments  that  at  least  measure  up  to 
the  minimum  in  order  that  excess  freight  may  be  avoided. 

The  Advantage  of  Quotations.— Although  time,  patience,  and 
careful  attention  to  details  are  required  in  order  to  furnish  c.i.f. 
or  f.o.b.  quotations  to  Latin  American  buyers,  the  painstaking 
manufacturer  who  is  willing  to  make  this  effort  will  find  that  his 
business  will  grow  much  more  rapidly  as  a  result.  Such  quotations 
can  now  be  made  more  easily  than  in  the  past  because  of  the 
numerous  means  of  obtaining  rates. 

An  Aid  to  auotations  C.I.F.— A  publication  of  great  value  to 
American  exporters,  which  will  enable  them  to  quote  prices  c.i.f. 
to  inland  points  in  the  republics  on  the  west  coast  of  South  Amer- 
ica, is  described  on  page  495  of  the  Appendix. 


CHAPTER  XVI 
LATIN  A^IERICAN   TRADE    LISTS   AND   DIRECTORIES 

Introduction. — Perhaps  the  greatest  source  of  loss  in  attempts 
to  ■\vin  Latin  American  trade  has  been  the  indiscriminate  circu- 
hiriziug  of  Latin  American  dealers  by  American  manufacturers. 
Proportionately  the  loss  in  Latin  America  has  possibly  been  even 
greater  than  in  the  United  States,  not  only  because  dealers  do  not 
use  printed  matter  to  the  same  extent  as  in  this  country,  but  also 
because  the  cost  of  mailing  letters  is  five  cents  for  each  half-ounce 
or  fraction  thereof. 

The  demand  for  reliable  trade  lists  increases  in  direct  ratio  to 
the  interest  of  American  manufacturers  in  export  trade.  Very 
often  manufacturers  conclude  that  they  have  a  desirable  article 
which  could  be  sold  advantageously  in  Latin  America  and  to  in- 
troduce it  they  require  competent  local  or  general  agents.  In  other 
instances,  such  manufacturers  are  unable  to  make  profitable  export 
house  connections  and  decide  to  try  direct  effort.  The  possibili- 
ties of  extending  the  mail  order  business  to  Latin  America  like- 
Avise  serve  to  create  a  demand  for  lists  of  the  names  of  possible 
buyers. 

The  Sources  of  Names  for  Lists^ — There  are  many  sources  of 
obtaining  names  of  dealers  and  individual  buyers  in  Latin  Amer- 
ica ;  the  most  common  of  these  are : 

1.  Ignited  States  Consuls. 

2.  Local  foreign  directories. 

3.  Directories  of  the  world. 

4.  Lists  supplied  by  companies  engaged  in  supplying  such 
names. 

5.  Xames  furiiisliod  by  export  trade  journals, 
n.    Lists  compiled  by  business  organizations. 

7.  Foreign  banks. 

8.  Foreign   ciistom  house   agents. 

9.  Traveling  or  local  salesmen. 

254 


l^EADE  LISTS  AXD  DIEECTOEIES  255 

10.  The  various  directories  issued  by  tlie  Bureau  of  Foreign  and 
Domestic  Coniincree. 

A  consideration  of  each  of  these  methods,  their  advantages  and 
disadvantages,  is  essential. 

United  States  Consuls. — One  of  the  means  most  frequently  used 
to  obtain  lists  of  names  is  for  manufacturers  to  write  to  United 
States  Consuls,  and  such  requests  usually  meet  with  prompt  re- 
sponse. Conscientious  efforts  to  supply  only  dependable  names  are 
made  by  the  average  Consul,  yet  he  is  at  a  serious  disadvantage, 
for  he  is  generally  unfamiliar  with  the  conditions  which  govern 
the  manufacturer's  efforts  to  secure  foreign  trade.  The  custom 
of  writing  American  Consuls  for  this  information  should  be  dis- 
couraged, inasmuch  as  the  Bureau  of  Foreign  and  Domestic  Com- 
merce at  Washington,  in  cooperation  with  American  Consuls,  has 
obtained  a  revised  and  detailed  list  of  the  principal  importers  and 
merchants  of  Latin  America.  By  making  application  through  the 
nearest  branch  office  of  the  Bureau  the  desired  names  may  be 
gotten. 

In  some  instances  the  lists  thus  obtained  may  prove  inadequate 
and  letters  to  American  Consuls  may  be  necessary.  When  such 
requests  are  made  (and  they  should  be  sent  through  the  Bureau 
of  Foreign  and  Domestic  Commerce  at  Washington),  the  manu- 
facturer should  state  definitel;^  his  requirements.  He  should  be 
particular  to  say  whether  he  wishes  to  deal  with  general  importers, 
to  establish  agencies,  or  to  sell  at  retail.  By  giving  the  Consul 
the  fullest  details  the  latter  will  be  able  to  act  far  more  intelli- 
gently than  if  left  to  guess  at  the  information  desired. 

Local  Foreign  Directories. — There  are  available  in  almost  every 
city  of  importance  local  directories  which  can  be  had  as  indicated 
on  page  498.  However,  the  disadvantages  of  such  directories  are 
obvious,  the  publication  often  being  too  old  to  be  accurate  or  com- 
plete and  merchants  usually  being  classified  regardless  of  standing 
or  responsibility.  Furthermore,  indiscriminate  circularizing  is  both 
expensive  and  dangerous,  inasmuch  as  the  manufacturer's  prices 
and  discounts  may  fall  into  the  wrong  hands. 

In  the  event  that  it  is  desired  to  use  names  thus  obtained  for 
circularizing,  a  list  should  be  made  thereof  and  submitted  to  local 
banks  or  individuals  in  a  position  to  know  something  of  the  stand- 
ing of  dealers,  with  the  request  that  the  names  of  those  unworthy 


256  EXPORTING  TO  LATIN  AMEEICA 

of  credit  or  no  longer  in  business  shall  be  removed.  This  plan  will 
serve  to  minimize  waste.  In  making  such  a  request  the  letter 
should  be  very  carefully  worded  and  accompanied  by  an  interna- 
tional postal  coupon  (cost,  six  cents)  for  the  reply. 

Directories  of  the  World. — There  are  several  directories  pub- 
lished by  European  firms,  giving  lists  of  dealers  in  almost  every 
important  place  in  the  world.  These  are  frequently  the  source  of 
much  waste  circulation,  because  of  lack  of  sufficient  revision  and 
also  because  they  are  incomplete.  Before  the  cards  made  from 
such  names  are  placed  in  a  permanent  file  for  frequent  use,  the 
accuracy  and  responsibility  of  the  names  should  be  verified  by 
letters  to  local  banks  or  to  United  States  Consuls  who  may  also 
be  of  service  in  the  correction  of  these  lists. 

Lists  Supplied  by  Companies  That  Sell  Names. — Addressing  com- 
panies who  have  a  list  department  are  accustomed  to  advertise  the 
sale  of  foreign  trade  lists  to  which  may  be  made  the  same  general 
objections  as  those  in  the  preceding  paragraphs.  If  such  names 
are  obtained  they  should  be  verified  by  the  methods  already 
suggested. 

Lists  Furnished  by  Export  Trade  Journals. — The  names  of  deal- 
ers furnished  by  export  trade  journals  are  more  likely  to  be 
reliable  than  those  selected  arbitrarily  from  directories.  This 
is  due  to  the  fact  that  the  names  are  obtained  from  reliable  corre- 
spondents of  the  publishers,  and  in  many  instances  they  are  the 
names  of  actual  subscribers.  Furthermore,  by  means  of  lengthy 
experience,  the  publishers  are  likely  to  recognize  the  importance 
of  verified  lists.  Names  obtained  from  this  source  will  serve  as 
a  good  check  for  lists  gotten  otherwise. 

Lists  Compiled  by  Business  Organizations. — Membership  in  a 
business  organization,  a  feature  of  whose  work  is  assistance  in 
foreign  trade  extension,  may  entitle  the  manufacturer  to  certain 
trade  lists.  Names  thus  supplied  are  usually  gathered  by  means 
already  described.  However,  an  efficient  secretary  of  such  a  trade 
body  can  render  valuable  service  in  the  checking  of  lists  by  submit- 
ting names  for  revision  to  the  officers  of  the  Chambers  of  Com- 
merce and  other  commercial  organizations  of  Latin  America.  In 
any  event  when  names  are  supplied  by  commercial  organizations, 
the  manufacturer  should  insist  upon  knowing  how  they  were  com- 
piled- 


TRADE  LISTS  AND  DIRECTORIES  ^57 

The  Assistance  of  Foreign  Banks  and  Bankers. — Another  means 
of  obtaining  names  is  that  of  writing  banking  houses  in  Latin 
American  cities,  stating  in  detail  the  requirements.  This  is  usually 
effective  but  particularly  where  it  is  desired  to  establish  agencies. 
In  the  event  that  lists  are  requested  of  banks,  it  may  prove  advis- 
able to  submit  names  obtained  from  other  sources,  which  will 
enable  the  bank  to  run  over  them  quickly  and  check  those  not 
desirable. 

The  World's  Trade  Directory. — Several  years  ago  the  Depart- 
ment of  Foreign  and  Domestic  Commerce  in  Washington  compiled 
a  "World's  Trade  Directory"  which  included  the  names  of  commer- 
cial houses  and  importers  in  general  located  in  various  parts  of 
the  world.  These  names  were  gathered  by  United  States  Consuls 
and  were  classified  according  to  industries.  If  used,  as  all  trade 
directories  should  be  used,  in  a  limited  way,  they  can  be  made  to 
assist  materially  in  the  formation  of  a  mailing  list. 

The  Revised  Trade  Directories  of  South  America. — Because  of 
the  insistent  demand  for  a  revised  directory  of  Latin  America 
exclusively,  and  one  more  complete  and  reliable  than  the  first 
edition,  the  Department  has  published  several  volumes  of  directo- 
ries. These  contain  a  detailed  list  of  South  and  Central  American 
importers  and  merchants,  and  as  the  revision  has  been  made  in 
cooperation  with  American  consular  officers,  the  names  were 
brought  up  to  date  of  publication.  These  directories  are  listed  on 
page  504  of  the  Appendix. 

How  Names  Are  Listed. — As  far  as  the  information  could  be 
obtained,  the  names  of  American  and  other  foreign  agents  of 
South  American  importing  firms  were  listed;  and  importing  firms 
and  branch  houses  located  in  various  South  American  cities  also 
appear  therein.  In  the  preparation  of  the  directories  there  were 
included  only  the  names  of  such  merchants  or  other  individuals 
who  seemed  likely  purchasers  of  North  American  materials  or 
merchandise.  The  directories  are  bound  in  buckram  in  octavo 
form. 

Requisites  for  Latin  American  Mailing  Lists. — 1.  System  is  the 
first  requisite  in  the  formation  of  any  list  and  is  especially  im- 
portant in  establishing  a  mailing  list  for  Latin  America.  The 
care  and  preparation  of  such  a  list  should  be  delegated  to  one 
person  on  whom  the  responsibility  for  its  upkeep  may  be  defi- 


258  EXPORTING  TO  LATIN  AMEEICA 

nitely  placed.     This  person  should  preferably  have  some  knowl- 
edge of  Spanish  and  of  conditions  in  Latin  America. 

2.  The  lists  should  be  divided  into  at  least  two  classes,  the 
unverified  and  verified.  As  fast  as  a  name  has  been  definitely 
proved  a  desirable  prospect  it  should  be  placed  in  the  verified  divi- 
sion with  full  data  regarding  the  basis  on  which  it  is  verified,  that 
is,  whether  approved  by  bank,  consul,  correspondent,  or  by  a  defi- 
nite letter  or  order  from  the  merchant  himself. 

3.  The  foundation  of  the  verified  list  should  be  the  names  of 
dealers  who  have  answered  advertisements;  made  inquiries  for 
goods;  asked  quotations;  or  those  to  whom  shipments  have  been 
made;  names  supplied  by  local  agents,  etc. 

4.  When  information  is  obtained,  its  source  should  be  noted  on 
the  card.  A  good  method  is  the  use  of  two  checks;  that  is,  con- 
sulting the  American  Consul  as  well  as  banks  or  other  sources. 

5.  Traveling  salesmen  or  local  agents  should  be  supplied  with 
lists  of  all  names  obtained  from  the  various  sources,  and  they 
should  be  compelled,  after  visiting  a  town,  to  furnish  a  revised 
list  with  notations  relative  to  each  name.  Careful  attention  to 
this  detail  will  result  not  only  in  an  immense  saving  but  like- 
wise in  the  utmost  efficiency  in  the  distribution  of  printed  matter. 

The  Classifications  in  Latin  American  Lists. — Trade  lists  as  ob- 
tained from  directories  are  often  inadequate,  inasmuch  as  im- 
porters frequently  handle  all  sorts  of  commodities  and  may  be  listed 
only  under  one  heading. 

For  this  reason  they  may  not  be  circularized  unless  information 
has  been  obtained  to  indicate  exactly  what  goods  they  sell.  In 
this  connection  the  value  of  personal  investigation  by  local  or 
traveling  agents  is  apparent. 

Although  the  immediate  results  obtained  by  a  traveling  sales- 
man may  not  be  in  proportion  to  his  expenses,  the  gathering  of 
names  with  which  correspondence  can  be  carried  on  will  prove 
very  valuable. 

Factors  to  Consider  in  the  Use  of  Lists. — No  matter  with  what 
care  a  list  is  compiled  it  should  be  constantly  revised.  Changes 
occur  in  the  mercantile  world  of  Latin  America  as  in  the  United 
States  and  unless  these  changes  are  noted  on  the  cards  much  use- 
less and  expensive  circularizing  may  be  done.  When  lists  are  ad- 
dressed, the  utmost  care  should  be  taken  to  use  the  correct  pre- 


TEADE  LISTS  AND  DIEECTOEIES  259 

fixes,  and,  in  the  larger  cities,  street  addresses,  post-office  boxes, 
or  names  of  stores.  These  are  absolutely  indispensable  details,  as 
the  possibility  of  loss  in  the  mails  is  much  greater  than  in  this 
country. 

Trade  Lists  for  Mail  Order  Houses,. — The  rapid  development  of 
the  mail  order  business  with  Latin  America  and  the  opportunities 
for  mail  order  houses  in  that  field  have  aroused  a  groat  interest 
in  the  means  of  obtaining  names  of  possible  buyers.  In  the  chapter 
devoted  to  the  mail  order  business  are  given  concrete  suggestions 
as  to  whom  to  approach.  The  names  are  available  in  the  local 
directories,  of  which  a  list  is  given  in  the  Appendix.  The  most 
reliable  source  of  names  of  consumers  is  the  latter  themselves,  as 
they  frequently  submit  long  lists  of  possible  users  of  American 
products.  The  method  of  obtaining  these  is  indicated  in  Chapter 
XYIII. 

List  of  Local  Directories. — For  the  information  of  those  requir- 
ing local  directories  a  list  of  those  of  the  principal  cities  is  given 
on  page  498  of  the  Appendix.  The  names  and  addresses  of  the 
publishers  are  also  given,  together  with  the  cost  of  the  directories. 
Naturally  revisions  and  additions  are  continually  being  made. 


CHAPTER  XVII 

ADVERTISING   IN   LATIN   AMERICAN   NEWSPAPERS   AND 
MAGAZINES 

Introduction. — Advertising,  in  its  broadest  sense,  is  an  all-im- 
portant factor  in  developing  business  with  Latin  America.  Not- 
withstanding the  scientific  basis  upon  which  advertising  has  been 
placed  in  this  country,  the  standard  as  applied  to  Latin  America 
is  still  very  low.  Taking  as  an  example  the  vast  amount  of  money 
which  is  being  expended  wastefully,  advertising  may  well  be  said 
to  be  in  its  infancy  in  the  southern  republics. 

The  uses  of  advertising  in  Latin  America  are  as  diverse  as  in 
the  domestic  field.  It  can  be  used  for  the  purpose  of  opening 
markets,  creating  demand  among  dealers  or  consumers,  influencing 
direct  orders,  and  for  all  other  purposes  which  have  made  it  such 
a  powerful  influence  in  American  business. 

Adapting  American  Ideas. — Advertising  may  be  employed  in 
Latin  America  in  practically  every  form  that  is  known  in  the 
United  States.  Fundamentally,  the  principles  which  govern  its 
successful  use  are  identical,  although  the  methods  of  application, 
because  of  conditions,  are  different.  Experience  has  proved  that 
many  excellent  advertising  campaigns  have  been  equally  success- 
ful in  Latin  America  when  the  necessary  changes  to  adapt  them 
to  the  Latin  American  viewpoint  wore  made.  In  the  southern 
countries,  as  in  the  United  States,  it  is  merely  a  question  of  the 
right  appeal,  not  only  to  the  dealer  but  particularly  to  the  ulti- 
mate consumer.  In  many  instances  tlie  failure  of  advertising 
campaigns  has  l)Opn  due  solely  to  a  neglect  of  the  latter  factor. 

The  Essential  of  Advertising  Helps. — A  piece  of  advertising 
matter  which  proves  effective  in  the  United  States  may  be  alto- 
gether valueless  in  the  Latin  American  countries.  An  error  which 
is  extremely  frequent,  and  which  should  be  guarded  against,  is 
that  of  inserting  in  advertisements  the  same  prices  as  those  current 
in  the  United  States.    The  manufacturers  who  do  this  fail  to  take 

260 


ADVERTISING  IN  LATIN  AMERICA  261 

into  consideration  differences  in  monetary  standards,  besides  duty, 
freight,  and  other  charges.  An  advertisement  with  prices  quoted 
in  United  States  gold,  even  if  properly  translated,  will  be  useless 
in  the  interior  of  Peru  or  Argentina,  and  the  merchant  who  re- 
ceives it  will  be  prejudiced  against  the  manufacturer,  instead  of 
using  the  advertisement. 

Definite  Purpose  Needed. — No  matter  what  form  of  advertising 
is  decided  upon,  the  manufacturer  must  have  in  mind  a  very  defi- 
nite idea  of  the  purpose  he  means  to  accomplish  by  its  use.  Care- 
ful planning  and  analysis  in  advertising  for  Latin  America  are 
even  more  essential  than  in  the  case  of  domestic  publicity. 

The  Various  Kinds  of  Advertising. — The  various  forms  which 
advertising  may  assume  in  the  development  of  Latin  American 
trade  are  many,  but  may  be  roughly  classified  as  follows : 

1.  Specific  sales  literature  such  as  circulars,  catalogs,  letters, 
etc. 

2.  Distribution  of  novelties. 

3.  Advertisements  in  export  papers  and  trade  journals. 

4.  Advertisements  in  the  Latin  American  local  papers. 

5.  Advertising  by  means  of  signboards,  posters,  window  dis- 
plays, etc. 

The  Use  of  Advertising  Helps. — Advertising  helps  in  the  great 
majority  of  cases  are  highly  appreciated  by  dealers,  particularly 
when  properly  prepared  and  printed.  However,  as  in  the  case  of 
similar  matter  in  the  United  States,  the  waste  in  distribution  is 
so  great  that  before  extensively  undertaking  their  use  the  American 
manufacturer  should  inform  himself  definitely  of  the  exact  require- 
ments of  the  dealers  in  different  countries  and  the  desirability 
of  supplying  such  helps.  In  preparing  advertising  helps,  the  fol- 
lowing factors  should  be  carefully  considered : 

1.  Their  suitability  to  conditions,  not  alone  to  one  country  but 
to  the  different  places  in  Latin  America  where  they  are  to  be 
sent. 

2.  The  cost  to  the  merchant;  that  is,  whether  duty  will  be  col- 
lected thereon. 

3.  Whether  any  prices  are  to  be  printed  on  the  advertising  mat- 
ter and,  in  the  event  they  are,  whether  these  prices  will  be  suitable 
ones  for  the  countries  in  which  they  are  used. 

4.  "Layout"  designs,  copy  and  translation  to  suit  requirements. 


262  EXPORTING  TO  LATIN  AMERICA 

Different  Advertising  Helps. — In  order  to  be  useful,  selling 
helps  must  have  an  effective  sales  appeal.  Those  which  have 
been  found  very  successful  are  circulars,  booklets,  pamphlets,  etc. 
When  well  illustrated  and  attractively  printed,  dealers  have  often 
found  them  even  more  successful  in  attracting  trade  than  in  the 
United  States,  for  the  Latin  Americans  have  not  been  surfeited 
with  printed  matter  of  this  character  as  have  domestic  merchants. 
Other  forms  of  publicity  such  as  "cut-outs,"  window  displays, 
posters,  hangers,  and  newspaper  cuts  (electros)  are  also  valuable 
when  prepared  with  the  Latin  American  viewpoint  in  mind.  It 
is,  however,  very  essential  to  insure  the  use  of  such  helps,  and 
to  that  end  dealers  should  be  particularly  urged,  in  general  letters 
from  the  advertising  department,  to  lend  their  cooperation. 

Duties  Sometimes  Assessed. — In  some  of  the  republics  duties  are 
assessed  on  advertising  matter,  particularly  if  packed  in  quanti- 
ties and  if  the  articles  are  of  a  useful  character.  Because  of  the 
duty  and  freight  charges,  the  manufacturer  should  inform  the 
customer  of  his  willingness  to  pay  them;  if  he  is  unwilling  to  do 
so,  he  should  either  omit  the  advertising  matter  or  obtain  the 
consent  of  the  importers  to  pay  the  charges.  This  is  a  question 
about  which  there  should  be  no  doubt,  as  it  is  a  fruitful  source  of 
misunderstanding.  Furthermore,  in  the  event  that  the  advertising 
matter  is  not  used,  a  needless  expense  will  have  been  incurred. 

Souvenirs  and  Novelties. — The  matter  of  duty  applies  with  par- 
ticular force  to  advertising  novelties  and  souvenirs,  which  are  gen- 
erally very  popular  and  useful  in  development  of  trade.  These  are 
of  various  kinds,  but  particularly  fans,  mirrors,  pencils,  etc.  Oc- 
casionally customs  officials  will  permit  advertising  matter  to  enter 
without  the  payment  of  duty,  but  it  is  a  matter  which  the  idiosyn- 
crasies of  the  customs  officials  alone  determine. 

Window  Displays. — This  form  of  advertising,  especially  when 
included  in  an  organized  campaign,  has  been  found  quite  as  suc- 
cessful in  Latin  America  as  in  the  United  States.  An  increasingly 
large  number  of  stores  are  adopting  modern  show  windows  per- 
mitting adequate  displays.  To  be  effective,  the  displays  must  be 
in  tlie  language  of  the  country  in  which  they  are  exhibited.  Be- 
fore these  are  shipped  the  manufacturer  should  ascertain  the  duty 
thereon,  and  should  make  it  clear  to  his  customer  tliat  the  charges 
for  freight  and  duty  (if  any  are  incurred)  will  be  for  his  account. 


ADVERTISING  IN  LATIN  AMERICA  263 

Metal  and  Other  Signs. — Posters,  hangers,  and  signs,  when  at- 
tractively designed,  prove  a  valuable  means  of  securing  publicity. 
The  keynote,  however,  should  be  the  use  of  a  distinctive  trade-mark 
which  can  easily  be  remembered,  and  all  other  advertising  done 
should  likewise  be  based  upon  this  idea.  Signs  are  frequently  dis- 
played by  merchants  along  highways,  on  walls,  etc.  Much  waste 
can  be  avoided  if  the  manufacturer  will  draw  particular  attention 
to  the  shipment  of  this  material,  with  a  request  for  its  proper 
use.  As  an  example  of  the  value  of  signs  may  be  cited  the  in- 
stance of  an  English  company  which  manufactures  ink.  A  sign 
properly  painted  in  Spanish  was  placed  at  every  railway  station  of 
the  Argentine  Republic  with  the  result  of  a  large  increase  in 
business.  The  signs  of  a  well-known  sewing  machine  which  has 
world-wide  distribution  may  also  be  mentioned,  as  they  are  to  be 
found  in  the  most  obscure  hamlets  of  Latin  America. 

Electric  Signs  and  Novelties. — In  all  places  where  electricity  has 
been  introduced,  and  especially  in  the  larger  cities,  its  use  for 
advertising  is  rapidly  increasing.  Lighted  signs  and  attractively 
illuminated  windows  are  appreciated  particularly,  as  in  many  of 
the  Latin  American  cities  the  main  streets  or  plazas  are  the  cen- 
ters of  community  life  and  the  streets  in  which  the  stores  are 
located  are  more  generally  thronged  than  is  the  case  in  the  United 
States.  In  the  preparation  of  all  advertising  great  care  should 
be  taken  that  it  does  not  conflict  with  the  religious  beliefs  or 
practices.  By  far  the  largest  percentage  of  the  population  of  Latin 
America  is  Roman  Catholic  and  all  prejudice  should  be  studiously 
avoided. 

The  Value  of  Moving  Pictures. — The  development  of  the  mov- 
ing picture  industry  in  Latin  American  cities  has  been  as  impor- 
tant as  in  the  United  States,  and  cinematograph  films  may  be  used 
to  great  advantage,  as  exhibitions,  even  in  the  smaller  places, 
are  as  frequent  as  in  this  country.  When  an  appeal  to  the  ulti- 
mate consumer  is  to  be  made,  this  form  of  advertising  can  be  used 
very  extensively  and  many  important  successes  have  already  been 
achieved  in  this  field. 

Taxation  of  Advertisements  and  Their  Regulations. — As  in  all 
other  forms  of  business  in  Latin  America,  taxation  is  an  important 
factor  in  advertising.  This  is  particularly  so  in  the  large  cities, 
and  a  tax  is  collected  on  every  outdoor  sign,  whether  in  the  form, 


264  EXPORTING  TO  LATIN  AMERICA 

of  a  poster,  of  a  billboard  or  an  advertisement  on  an  advertising 
kiosk,  which  is  a  structure  partaking  of  the  nature  of  a  billboard. 
Full  information  regarding  these  taxes  may  be  obtained  from 
the  advertising  agencies  located  in  the  large  cities,  as  they  are 
an  expense  which  must  be  considered  in  making  an  appropria- 
tion. 

Latin  American  Advertising  Prospects. — Many  Americans  re- 
gard the  Latin  American  republics  as  extremely  undeveloped. 
This  is  only  partially  true,  for  while  there  is  a  far  greater  per- 
centage of  illiterates  such  as  the  peon  classes,  the  development  of 
the  better  educated  and  well-to-do  classes  is  akin  to  that  of  the 
United  States.  The  heaviest  American  advertisers  in  Latin  Amer- 
ica at  the  present  time  are  the  patent  medicine  manufacturers.  By 
the  use,  not  only  of  newspapers  but  of  street  cars,  almanacs,  and 
the  other  mediums  usually  employed,  many  have  succeeded  in 
building  up  a  considerable  business.  In  advertising  in  the  Latin 
American  republics,  the  class  to  whom  the  appeal  is  to  be  directed 
must  be  carefully  considered.  Most  of  the  articles  that  are  im- 
ported are  used  exclusively  by  the  upper  or  educated  classes,  which, 
generally  speaking,  form  but  a  small  proportion  of  the  popu- 
lation. 

Other  Requisites  to  Success  in  Advertising. — Some  American 
merchants  desire  to  take  a  "short  cut"  in  establishing  a  Latin 
American  trade  and  seek  to  accomplish  their  purpose  by  adver- 
tising campaigns.  Such  campaigns  have  been  successful  and  can 
be  utilized.  However,  a  campaign  of  any  magnitude,  particularly 
one  addressed  to  the  ultimate  consumer,  must  be  based  on  a  serious 
consideration  of  the  factors  on  which  are  based  the  essentials  of 
advertising  success  in  the  United  States.  These  are:  (a)  definite 
sales  possibilities ;  (b)  distribution;  (c)  a  thoroughly  efficient  plan ; 
(d)  dealers'  cooperation. 

What  to  Avoid  in  Latin  American  Advertising. — In  the  prepara- 
tion of  advertising  matter  there  are  certain  essentials  which  must 
be  observed.  They  are  so  vital  that  the  success  or  failure  of  an 
advertisement  may  be  determined  thereby.  American  ideas, 
phraseology,  and  above  all,  slang  phrases  and  strange  or  misleading 
words  should  be  studiously  avoided.  A  translator  should  be  in- 
structed to  render  his  version  in  such  a  manner  that  the  adver- 
tisement may  be  easily  intelligible.     Translations  made  literally 


ADVEETISING  IN  LATIN  AMERICA  265 

from  the  English  into  the  Spanish  or  Portuguese  will  fail  of  re- 
sults; therefore  the  wording,  arrangement,  and  translation  are  as 
important  as,  if  not  more  so  than,  the  choice  of  the  medium  in 
which  the  advertisement  appears. 

The  Importance  of  Technical  Translations. — The  manufacturer 
who  contemplates  building  a  business  with  the  Latin  American 
republics  should  find  no  detail  too  insignificant  for  attention.  It 
has  been  a  marked  feature  of  much  American  publicity  that  busi- 
ness men  who  otherwise  were  perfectly  willing  to  pursue  a  lil)eral 
policy  in  the  development  of  export  trade,  in  the  matter  of  their 
translations  were  inclined  to  niggardliness. 

How  Technical  Translations  Should  Be  Made. — It  is  not  only 
essential  that  translations  should  be  grammatical  but  that  the 
technical  phrases  should  be  those  that  can  be  understood  by  Latin 
American  buyers.     Technical  dictionaries  are  listed  on  page  467. 

The  development  of  commerce,  especially  in  manufactured  arti- 
cles, implements,  and  machinery  of  highly  scientific  nature,  makes 
it  essential  that  care  should  be  taken;  this  is  particularly  true 
where  it  is  necessary  to  give  instructions  for  the  setting  up  or  the 
operation  of  machinery  that  is  shipped  in  parts. 

Technical  Translator  Requires  Freedom. — As  the  most  pains- 
taking technical  translator  frequently  is  unable  to  find  in  any  dic- 
tionary the  proper  words  for  parts  which  have  lately  come  into 
use,  he  should  be  allowed  the  utmost  freedom  to  express  himself 
so  that  his  meaning  will  be  intelligible  to  anyone.  Under  no  cir- 
cumstances should  such  translations  be  made  hurriedly  or  care- 
lessly for  the  purpose  of  merely  getting  the  work  done,  as  the 
investment  of  money  in  a  highly  efficient  catalog  will  frequently 
pay  for  itself  many  fold.  The  translator  should  preferably  have 
a  knowledge  of  the  art,  science,  or  industry  for  which  he  is  trans- 
lating. He  should  be  urged  to  visit  the  shop  or  factory  where 
the  machines  are  made  or  are  in  operation  that  he  may  see  the 
purpose  of  the  various  parts  and  the  complete  mechanism.  By 
painstaking,  earnest  cooperation  between  workmen,  salesmen,  and 
translator,  the  most  highly  involved  machine  can  be  made  thor- 
oughly understandable  to  a  novice. 

The  Payment  of  Technical  Translators. — The  greatest  drawback 
to  the  employment  of  technical  experts  is  the  expense,  and  here 
again  is  extreme  eeonomv  unwise.     The  business  man  must  realize 


266  EXPORTING  TO  LATIN  AMERICA 

that  in  the  acquirement  of  his  knowledge  the  translator  has  spent 
time  and  effort  and  should  be  paid  accordingly. 

Technical  translations  should  always  be  carefully  checked  and 
.the  manufacturer  should  invariably  insist,  before  the  printing  of 
a  technical  catalog,  on  submitting  it  to  correspondents  in  various 
cities  of  Latin  America  for  approval.  The  expenditure  of  two  or 
three  months'  time  for  this  purpose  will  have  good  results  and  he 
will  be  able  to  proceed  far  more  vigorously  with  an  intelligent  sell- 
ing campaign  if  assured  that  his  literature  is  of  the  right  sort. 

How  Technical  Translators  May  Be  Employed. — If  a  technical 
translator  is  not  available  in  the  city  where  the  manufacturer  is 
located,  he  can  easily  arrange  to  have  his  work  done  in  New  York 
where  there  are  numerous  excellent  translation  bureaus.  By  read- 
ing the  advertisements  in  the  export  trade  journals  he  will  find 
the  addresses  of  expert  translators;  with  the  leading  export  jour- 
nals he  can  also  make  satisfactory  arrangements.  The  latter,  by 
reason  of  their  volume  of  business,  are  able  to  employ  men  of 
ability  and  the  results  are  almost  certain  to  be  satisfactory  since 
they  are  continually  engaged  in  translating  the  advertisements  of 
technical  articles  which  are  advertised  in  the  columns  of  their 
journals. 

Even  though  the  manufacturer  is  a  member  of  a  business  or- 
ganization equipped  with  a  translation  bureau,  he  should  be  very 
careful  to  ascertain  that  its  translator  is  not  merely  a  clerk  with 
a  superficial  knowledge  of  Spanish  and  of  technical  matters,  dse 
results  are  likely  to  be  misatisfactory. 

The  names  of  export  journals  will  be  found  on  page  495. 

The  Cost  of  Translations. — IManufacturers  who  insist  upon  the 
utmost  efficiciK-y  should  not  pursue  a  niggardly  policy  in  the  mat- 
ter of  paying  for  their  translations;  the  cost  of  having  letters  or 
other  translations  made  varies  materially.  In  some  instances  trans- 
lators are  willing  to  translate  short  letters  for  10  cents  or  15  cents 
per  letter;  in  other  instances  25  cents  is  charged.  A  higher  charge 
is  usually  made  for  translating  English  letters  into  the  language 
of  the  country  from  which  the  letter  comes.  The  translations  of 
the  ordinary  business  communications  from  Spanish  or  Portuguese 
into  English  varies  from  25  cents  to  35  cents  for  100  words,  and 
from  Englisli  into  these  tongues  from  25  cents  to  45  cents.  The 
copy  of  teclinical  translations  is  naturally  much  higher.     Incom- 


ADVERTISING  IX  LATIN  AMEEICA  267 

petent  translators  may  make  lower  rates  but  they  should  be 
avoided. 

Character  of  Export  Papers. — The  growth  of  Xorth  American 
exports  to  the  southern  republics  is  due  in  no  small  degree  to 
export  journals.  Exports  have  not  only  been  due  solely  to  the 
fact  that  orders  followed  the  publication  of  advertisements  in  these 
journals,  but  to  the  efforts  made  by  their  publishers  to  interest 
American  business  men  in  the  possibilities  of  Latin  American  trade. 
The  modern  export  paper  aids  its  advertisers  by  supplying  special 
lists  of  buyers,  translations  of  letters,  preparation  of  advertising 
matter,  etc.  It  supplies  credit  reports  and  gives  what  informa- 
tion is  asked  in  regard  to  such  subjects  as  shipping  facilities,  proper 
methods  of  packing,  financing,  etc. 

The  Readers  of  Export  Journals. — The  export  paper  has  no 
counterpart  in  the  home  field.  This  is  due  to  the  fact  that  its 
readers  are  far  more  general  than  is  the  case,  for  instance,  with 
trade  papers  in  the  United  States.  An  explanation  of  this  con- 
dition may  be  found  in  that  so  many  of  its  subscribers  in  Latin 
America  handle  a  variety  of  lines  of  merchandise  or  products. 
The  importer  is  very  frequently  interested  in  other  activities,  par- 
ticularly farming,  and  sometimes  small  manufacturing  enterprises, 
and  in  those  countries  where  there  is  mineral  wealth  his  interests 
may  extend  to  the  development  of  mines.  Several  of  the  export 
journals  appeal  more  particularly  to  the  owners  of  large  plantations 
or  farms,  but  in  this  instance  also  the  number  of  business  men  in 
general  who  read  them  would  be  far  larger  than  in  the  case  of 
agricultural  magazines  in  the  United  States. 

Export  and  Technical  Journals  in  Latin  America. — An  interest- 
ing feature  of  Latin  American  trade  development  has  been  the 
influence  of  export  and  technical  journals.  There  is  no  absolutely 
proven  means  of  obtaining  foreign  trade,  and  the  methods  that  have 
been  followed  to  achieve  success  have  been  as  varied  as  the  number 
of  manufacturers  who  have  attempted  to  gain  it.  It  is  not  strange, 
therefore,  that  manufacturers  in  certain  branches,  particularly  of 
specialized  articles,  have  restricted  their  initial  efforts  in  the  Latin 
American  fields  to  advertisements  in  export  journals.  This  has 
resulted  in  both  success  and  failure,  but  the  fact  that  a  number 
of  such  export  journals  continue  to  carry  the  advertisements  of 
the  same  manufacturers  for  many  years  in  succession  indicates 


268  EXPOKTING  TO  LATIN  AMERICA 

that  the  merits  of  this  form  of  advertising  have  been  definitely 
proved. 

American  manufacturers  who  have  found  it  advantageous  to 
place  advertisements  in  export  journals  did  so  with  very  definite 
objects  in  view.  They  were:  (1)  general  publicity;  (2)  to  obtain 
definite  inquiries  which  might  be  developed  into  orders.  The 
efl^ectiveness  of  advertising  for  general  publicity  cannot  be  doubted. 
The  advantages  to  the  manufacturer  of  an  advertisement  in  such 
journals  while  trade  is  being  developed  are  indisputable.  In  this 
book  there  is  no  place  for  the  discussion  of  the  principles  of  adver- 
tising except  as  they  apply  to  Latin  American  trade  conditions. 
Therefore,  it  will  suffice  to  say  that  the  constant  appearance  of  the 
manufacturer's  name  in  journals  circulated  in  Latin  America 
]>rovGS  of  both  direct  and  indirect  value. 

The  Various  Types  of  Export  Journals. — In  discussing  this  prob- 
lem the  various  kinds  of  export  journals  must  be  considered.  Gen- 
erally speaking,  they  may  be  divided  into  four  classes  as  follows: 

1.  Journals  devoted  exclusively  to  commercial  matters  and  con- 
taining articles  which  make  an  appeal  to  the  Latin  American 
dealers  or  importers. 

2.  Journals  that  are  intended  for  circulation  largely  among  agri- 
culturists. 

3.  Journals  partaking  of  the  nature  of  magazines,  contain- 
ing literary  articles,  etc.,  and  with  the  principal  appeal  to  the 
consumer. 

4.  Technical  papers  circulated  exclusively  among  the  buyers  of 
a  particular  trade  or  profession. 

In  considering  the  advertising  value  of  these  various  mediums, 
the  uses  of  the  last  mentioned  are  obvious.  To  appreciate  fully 
the  principle  underlying  the  distribution  of  the  first  three  it  is 
necessary  to  note  the  difference  between  conditions  in  the  United 
States  and  those  in  the  Latin  American  countries.  Generally 
speaking,  the  lines  of  division  are  not  so  strongly  drawn  as  in 
the  domestic  field.  To  a  far  greater  extent  than  in  this  country 
the  importer  will  be  interested  in  various  industries,  and  as 
the  number  of  journals  received  in  the  Latin  American  countries 
does  not  approximate  that  of  the  United  States,  an  export  paper 
would  bave  a  greater  number  of  general  readers  than  would  a 
paper  of  the  same  nature  in  the  American  field.     Because  of  this 


ADVERTISING  IN  LATIN  AMERICA  269 

fact,  a  number  of  the  heaviest  and  most  persistent  advertisers, 
whose  advertisements  are  ostensibly  directed  to  dealers,  make  a 
very  strong  appeal  to  consumers.  Inquiries  from  the  latter  class 
are  used  for  the  purpose  of  obtaining  agents  in  places  where  no 
selling  arrangements  exist. 

How  to  Determine  the  Values. — An  appropriation  for  advertis- 
ing in  Latin  iVmerica  must  be  governed  by  the  same  principles 
that  govern  similar  expenditures  for  the  home  market.  The  ad- 
vertiser should  insist  on  definite  information  on  the  following 
points : 

1.  Proof  of  circulation. 

2.  Analysis  of  distribution.  By  this  is  meant  obtaining  defi- 
nite facts  and  figures  relative  to  the  users  of  his  product  among 
the  readers  of  the  publication. 

3.  The  cost  of  obtaining  inquiries. 

4.  The  percentage  of  inquiries  that  result  in  business. 
Unless  an  appropriation  is  made  with  this  fact  clearly  in  mind, 

loss  or  waste  is  likely  to  result.  Many  swindles  have  been  perpe- 
trated under  the  guise  of  journals  published  to  foster  trade  with 
Latin  America.  Either  the  paper  has  no  circulation  or  the  facts 
regarding  it  were  distorted  and  misstated. 

An  export  journal  which  may  have  been  productive  of  great 
results  for  the  manufacturer  of  hardware  specialties  may  be  a 
flat  failure  as  a  producer  of  business  for  a  clothing  specialty.  The 
principles  of  efficiency  as  applied  to  advertising  in  general  should 
be  used  in  judging  the  advertising  value  of  export  papers. 

The  Use  of  a  Test  Key. — Advertisements  inserted  in  export  jour- 
nals must  be  carefully  keyed.  This  is  particularly  essential  when 
direct  orders  or  inquiries  are  expected  and  when  advertisements 
are  placed  in  more  than  one  paper.  It  is  also  desirable,  in  adver- 
tising certain  lines  in  which  the  use  of  a  catalog  is  essential,  and 
when  it  is  desired  to  avoid  a  loss  of  time,  to  announce  in  the  adver- 
tisement that  the  catalog  of  the  advertiser  may  be  consulted  in 
all  American  consulates.  In  this  manner,  merchants  who  are  in 
immediate  need  of  the  article  may  easily  find  the  catalog  and  avoid 
the  delay  of  correspondence. 

How  the  Value  of  an  Export  Journal  Is  Determined. — ^Vhen 
direct  inquiries  are  essential,  a  careful  report  must  be  kept  that 
the  cost  of  each  inquiry  may  be  definitely  determined.    In  studying 


270  EXPORTING  TO  LATIN  AMERICA 

the  possibilities  of  the  various  journals  it  is  desirable  to  consider 
certain  facts.     These  are  as  follows: 

1.  The  relation  of  the  article  advertised  to  the  character  of 
the  pviblication. 

2.  The  number  of  possible  buyers  among  its  subscribers  or 
readers. 

3.  The  cost  of  the  advertisement  in  relation  to  its  circulation 
and  possible  interested  persons. 

After  an  advertisement  has  appeared,  the  results  can  be  meas- 
iired  with  almost  absolute  accuracy  by  the  use  of  the  key. 

A  Proof  of  Circulation  Imperative. — The  alert  manufacturer 
should  subject  all  claims  of  circulation,  etc.,  to  the  most  rigid  in- 
vestigation. This  should  apply  not  only  to  the  number  of  copies 
circulated  but  also  to  the  character  of  subscribers,  the  country  in 
which  the  publication  appears,  etc.  This  is  essential  because  of 
the  possibility  of  a  large  waste  circulation  in  the  sale  of  certain 
articles.  As  a  concrete  example  may  be  cited  merchandise  which 
is  subject  to  climatic  conditions.  Articles  which  would  sell  ex- 
clusively in  the  temperate  zone  and  would  be  too  warm  for  use 
in  the  tropics  would  thus  appeal  only  to  those  merchants  or  con- 
sumers in  Latin  America  who  are  located  at  such  an  altitude 
or  at  such  a  degree  of  latitude  that  they  would  be  interested. 
Merchants  or  consumers  located  in  those  places  having  a  tropical 
climate  would  represent  so  much  waste  circulation. 

Other  Factors  in  Advertising. — In  considering  advertising  in 
either  an  export  or  technical  journal,  several  conditions  must  be 
considered  when  studying  circulation.  These  are:  (1)  unfavor- 
able tariffs;  (2)  inaccessibility;  (3)  competitive  articles.  In 
some  countries  such  tariffs  are  in  effect  that  the  importations  of 
certain  products  are  impossible;  in  others,  even  though  the  tariff 
may  be  favorable,  local  or  foreign  competition  may  make  a  sale 
out  of  the  question;  and  in  still  other  countries,  the  subscribers 
to  a  journal  may  be  located  in  such  remote  places  that  they  may 
be  quite  negligible.  In  judging  the  value  of  journals  severe  tests 
must  be  applied,  for  by  a  careful  analysis  of  the  facts  the  manu- 
facturer may  learn  that  journals  with  a  much  smaller  circulation 
in  reality  are  often  better  adapted  to  his  needs  and  will  produce 
inquiries  or  orders  at  a  lower  individual  cost  than  other  publi- 
.'ations. 


ADVERTISING  IN  LATIN  AMEEICA  271 

The  Value  of  Advertisements  in  Trade  Journals. — Success  in  the 
use  of  trade  journals  by  some  advertisers  has  been  based  on  the 
following  reasons : 

1.  The  general  publicity  was  linked  with  its  sales  campaigns 
and  contributed  to  the  success  of  the  latter.  This  was  due  to  the 
fact  that  the  buyer  in  Latin  America  placed  a  higher  valuation 
on  the  catalogs,  letters,  and  circulars  received  from  the  American 
manufacturer  because  the  latter's  advertisements  appeared  in  re- 
liable export  papers  of  wide  circulation. 

2.  The  definite  inquiries  which  were  thus  obtained  were  devel- 
oped into  orders. 

Obtaining  Greatest  EiRciency. — The  merchants  and  manufac- 
turers who  have  been  most  successful  in  the  use  of  export  jour- 
nals have  found  it  desirable  to  employ  them  in  connection  with 
other  means  of  obtaining  trade.  They  have  often  been  the  means 
of  hastening  the  introduction  of  an  article  which  it  has  been  sought 
to  introduce  into  Latin  American  countries.  However,  the  export 
paper  alone,  as  all  other  methods  of  selling,  should  never  be  de- 
pended upon  exclusively  to  develop  a  trade  with  Latin  America. 
On  page  495  will  be  found  a  list  of  the  principal  export  journals  of 
the  United  States,  together  with  their  circulation,  advertising 
rates,  etc. 

Technical  Papers  and  Their  Use. — The  increase  of  export  trade 
with  Latin  America  makes  specializing  more  essential.  As  a  result 
there  are  now  being  published  export  editions  of  trade  journals 
devoted  to  certain  particular  industries.  Examples  of  this  kind 
of  trade  journal  are  found  in  the  mining  industry,  hardware,  dry 
goods,  clothing,  shoes,  etc.  The  principles  applicable  to  the  plac- 
ing of  an  advertisement  in  these  journals,  both  as  regards  character 
and  circulation,  are  the  same  as  with  export  papers.  In  the  case 
of  certain  industries,  no  matter  what  may  be  the  circulation  in 
a  particular  country  it  may  be  considered  absolute  waste,  because 
of  the  impossibility  of  overcoming  tariff  restrictions  and  com- 
petitive or  local  conditions.  As  a  concrete  example  may  be  cited 
the  circulation  of  a  shoe  and  leather  journal  in  the  republic  of 
Salvador.  Shoe  manufacturers  whose  advertisements  appeared 
in  such  a  journal  would  find  the  percentage  of  waste  in  direct  pro- 
portion to  the  circulation  in  that  country,  because  of  the  impos- 
sibility  of   selling  imported   footwear   in   that   republic.      On   the 


272  EXPORTING  TO  LATIN  AMERICA 

other  baud,  maiiufactiirers  of  leather,  machinery,  findings,  etc., 
could  count  definitely  upon  the  circulation  in  Salvador,  as  in  also 
practically  every  other  Latin  American  country,  because  they  are 
not  handicapped  as  are  the  mani;facturers  of  shoes  who  must  cal- 
culate both  with  regard  to  tariff  and  local  competitive  conditions. 

The  Use  of  Advertising  to  Open  Accounts. — Many  American 
business  men  wish  to  duplicate  North  American  successes  in  the 
quick  establishment  of  relations  and  in  the  opening  of  accounts, 
but  they  must  act  with  much  caution.  Conditions  are  quite  dif- 
ferent in  Latin  America  and,  as  has  already  been  pointed  out, 
the  extreme  conservatism  of  the  people  will  at  all  times  make 
necessary  an  ample  modification  of  a  well  considered  plan.  If  prop- 
erly conceived  and  executed  with  the  advice  and  guidance  of  a 
reliable  agency,  a  selling  campaign  may  be  effective,  but  frequently 
it  will  be  found  desirable  first  to  obtain  partial  distribution  and, 
in  connection  with  such  distribution,  plan  a  campaign  of  pub- 
licity to  increase  the  demand. 

The  use  of  newspapers  will  often  prove  highly  successful  in 
assisting  local  agents  to  obtain  a  greater  sale.  But  again,  the 
expenditure  should  not  be  made  at  long  range  since  experts  with 
a  thorough  knowledge  of  local  conditions  can  more  intelligently 
do  this  work  than  it  could  possibly  be  directed  from  the  United 
States. 

Effective  Advertisements  in  Export  Journals. — When  advertise- 
ments are  inserted  in  export  trade  papers  they  must  be  prepared 
with  even  greater  care  than  is  accorded  similar  advertising  in  the 
United  States.  The  necessity  for  frequent  changes,  both  of  copy 
and  illustrations,  is  imperative,  and  any  space,  no  matter  what 
the  size,  should  be  used  in  the  most  intelligent  and  scientific  man- 
ner. A  rational  use  of  "reason  why"  arguments,  in  addition  to 
good  illustrations  and  efi'cetive  translation,  will  be  productive  of 
results,  when  the  mere  insertion  of  a  firm's  name  or  an  inade- 
quate advertisement  will  result  in  failure.  A  prime  essential  is  to 
win  the  buyer's  confidence  and  this  cannot  be  done  when  sensa- 
tional or  extravagant  statements  are  made.  Facts  relating  to  the 
selling  points  of  articles  advertised  should  be  strongly  emphasized. 
The  profits  either  in  the  sale  or  in  the  utility  of  an  article  are  of 
far  greater  interest  to  the  importer  than  the  photograph  of  tbt 
large  factory  in  which  the  articles  are  manufactured. 


ADVERTISING  IN  LATIN  AMERICA  273 

The  Necessity  for  Frequent  Repetition. — The  success  of  an  ad- 
vertising campaign,  particularly  if  well  planned  and  persistently 
and  intelligently  executed  in  connection  with  a  proper  system  of 
follow-up,  is  almost  certain.  On  the  other  hand,  scattered  or  in- 
frequent advertisements  in  export  journals  should  never  be  used. 
The  occasional  insertion  of  an  advertisement  is  almost  certain  to 
result  in  loss.  This  has  been  so  thoroughly  established  that  some 
export  papers  refuse  to  accept  contracts  for  advertisements  unless 
for  a  definite  length  of  time  (tlie  minimum  usually  six  months), 
that  their  value  may  be  thoroughly  established.  Even  the  repeti- 
tion may  prove  useless  unless  the  copy  is  effective,  for  most  Latin 
American  dealers  are  very  conservative,  and  it  is  unreasonable  to 
expect  that  satisfactory  connections  will  be  broken  by  them  because 
of  the  occasional  advertisement  of  similar  merchandise  in  an 
export  paper. 

The  Use  of  Inquiries. — "When  a  campaign  of  advertising  in  Latin 
xA.merica  is  undertaken,  no  matter  what  the  medium,  all  inquiries 
that  result  should  be  carefully  "nursed'''  and  referred  to  local 
or  general  agents  or  to  traveling  salesmen,  when  it  is  not  feasible 
to  employ  local  agents.  The  display  of  interest  on  the  part  of  an 
inquirer  is  even  more  significant  than  in  the  United  States,  and 
if  properly  handled,  such  an  inquiry  may  result  in  a  consid- 
erable volume  of  business.  It  is  of  the  utmost  importance  that 
all  inquiries  be  carefully  indexed;  that  is,  noted  on  cards  which 
should  be  kept  for  quick  reference  and  frequent  follow-up.  In 
this,  as  in  all  Latin  American  advertising,  the  value  of  the  corre- 
spondence may  be  greatly  enhanced  by  proper  attention. 

Avoidance  of  Technical  Copy. — In  preparing  advertisements  for 
export  journals  or  local  magazines,  the  copy  to  be  used  should  be 
that  which  makes  the  strongest  appeal  to  reason.  Highly  involved 
words  or  technical  descriptions  such  as  appear  in  the  trade  papers 
of  the  United  States  are  most  likely  to  prove  complete  failures  in 
Latin  America.  Before  any  advertisement  is  inserted  the  study 
of  competitive  advertising  or  the  advertisements  inserted  by  suc- 
cessful makers  of  similar  lines  is  highly  advisable. 

The  Use  of  Local  Advertising. — Newspapers  in  Latin  America 
have  been  used  by  some  of  the  concerns  that  have  been  very  suc- 
cessful in  the  Latin  American  fiebl.  Advertisements  in  Latin 
American  newspapers,  if  intelligently  planned  and  executed,  are 


274  EXPORTING  TO  LATIN"  AMERICA 

likely  to  prove  more  effective  than  similar  advertisements  in  the 
United  States,  because  of  the  fact  that  in  Latin  America  there 
are  proportionately  fewer  newspapers  and  similar  publications. 

The  Value  of  Local  Newspapers. — Although  in  almost  all  of  the 
Latin  American  republics  there  is  only  a  limited  class  who  can 
read,  a  part  relatively  smaller  in  proportion  to  the  population  than 
in  the  United  States,  the  newspapers,  nevertheless,  have  been  found 
productive  of  important  results.  This  is  due  to  the  fact  that, 
with  the  exception  of  comparatively  few  staple  articles  which  are 
imported,  the  buyers  of  the  principal  imports  are  found  among  the 
readers  of  newspapers. 

The  Newspapers  of  Latin  America. — In  Latin  America  the  dif- 
ference in  the  character  of  newspapers  is  as  marked  as  the  variation 
of  the  daily  press  of  the  United  States. 

In  the  capitals,  such  as  Rio  de  Janeiro  and  Buenos  Aires,  for 
example,  there  are  published  daily  papers  which  woiild  be  a  credit 
to  any  city  in  the  world.  There  is  a  notable  difference  in  the 
character  of  papers  published  in  the  different  capitals.  This  is 
easily  explained  since  the  percentage  of  population  in  cities  like 
those  mentioned,  who  read  the  newspapers,  is  much  greater  than 
in  the  capital  of  Guatemala  where  the  uneducated  proportion  of 
the  population  is  much  larger. 

Even  more  marked  is  the  difference  between  the  papers  pub- 
lished in  the  large  cities  and  those  in  the  smaller  and  remote 
communities  where  the  expense  of  receiving  cablegrams  cannot  be 
borne;  as  a  result  the  papers  in  such  places  are  of  but  little 
importance. 

Expert  Advice  Desirable. — As  may  be  reasonably  expected,  the 
development  of  advertising  in  the  larger  cities,  such  as  Santiago 
(Chile),  Lima  (Peru),  Rio  de  Janeiro,  Buenos  Aires,  Montevideo, 
and  Havana,  has  resulted  in  the  establishment  of  advertising  agen- 
cies. These  agencies  concern  themselves  with  all  forms  of  pub- 
licity, including  newspapers,  street  cars,  billboards,  moving  pictures, 
etc.  No  advertising  campaign  of  any  moment  should  be  under- 
taken without  obtaining  the  advice  of  the  experts  who  devote  them- 
selves exclusively  to  this  field.  For  the  manufacturer  to  plan 
expenditures  from  his  North  American  office  without  a  thorough 
knowledge  of  local  conditions  is  likely  to  prove  disastrous  even 
though  he  is  guided  by  the  local  or  general  salesman,  or  an  im- 


ADVERTISING  IX  LATIN  AMERICA  275 

porting  jobber.  The  latter  individuals  may  base  their  conclusions 
on  erroneous  opinions  and,  although  the  advice  of  all  who  would 
be  interested  in  the  campaign  should  be  sought,  no  important 
publicity  campaign  should  be  undertaken  without  the  assistance 
of  experienced  advertising  men.  This  caution  applies  with  equal 
force  to  agencies  in  the  different  countries,  as  a  firm  with  a  thor- 
ough knowledge  of  the  Argentine  cannot  be  expected  to  know  local 
conditions  in  Chile,  nor  can  a  Brazilian  firm  advise  properly  re- 
garding an  expenditure  in  Uruguay. 

Contracting  for  Local  Advertising. — Favorable  advertising  con- 
tracts can  more  easily  be  made  by  experts  than  by  inexperienced 
business  men,  especially  in  view  of  the  instability  in  rates  and  the 
variations  in  discounts.  The  development  of  an  advertising  cam- 
paign in  Latin  America  should  not,  however,  be  left  to  the  attention 
of  an  American  advertising  agency,  no  matter  how  successful, 
unless  it  likewise  possesses  a  detailed  knowledge  of  Latin  American 
conditions.  This  includes  not  only  ia  knowledge  of  the  languages, 
but  of  the  social  life,  the  climate,  and  the  preparation  of  advertise- 
ments which  make  the  proper  appeal  to  Latin  Americans. 

How  to  Obtain  a  Reliable  Advertising  Agency. — Advertising 
agencies  established  in  Latin  America  occasionally  have  corre- 
spondents or  branch  offices  in  the  Ignited  States.  By  consulting 
the  local  directories  of  New  York  or  Chicago  the  names  of  such 
agencies  may  be  found.  If  it  is  desired  to  correspond  with  local 
agencies  in  the  different  republics,  their  names  may  be  obtained  as 
follows : 

1.  By  consulting  the  directories  of  the  larger  cities,  such  as 
Buenos  Aires,  Rio  de  Janeiro,  Santiago,  etc. 

2.  By  consulting  the  trade  directories  of  the  Bureau  of  Do- 
mestic Commerce. 

3.  By  approaching  the  branch  offices  of  the  Bureau  of  Foreign 
Commerce  or  writing  direct  to  Washington. 

4.  By  making  application  for  the  information  to  the  commercial 
organizations. 

The  Use  of  Local  Magazines. — The  magazine,  such  as  it  is  gen- 
erally known  in  the  Ignited  States,  circulates  in  Latin  America 
to  a  far  more  limited  extent  than  in  the  domestic  field.  The  maga- 
zines that  enjoy  the  largest  circulation  are  those  i)ul)lished  in  Spain, 
which  are  read  with  great  interest  because  of  the  numerous  de- 


276  EXPORTING  TO  LATIN  AMEEICA 

scendants  of  Spanish  people  in  the  Latin  American  republics.  Of 
a  more  concentrated  circulation  and  perhaps  a  larger  number  of 
readers  than  the  Spanish  magazines  are  those  illustrated  papers 
which  are  published  in  the  various  republics,  particularly  in  the 
Argentine,  Chile,  and  Peru.  Typical  papers  of  this  character  are: 
La  Ilustracion  Sud  Americana,  of  Buenos  Aires,  a  journal  which  is 
issued  fortnightly  with  a  circulation  of  about  15,000;  the  Fray 
Mocho,  a  weekly  with  a  circulation  of  100,000;  Caras  and  Caretas, 
a  weekly  Journal,  circulation  about  112,000;  Zigzag,  of  Santiago, 
Chile,  a  weekly  publication,  circulation  35,000;  the  Fon  Fon,  a 
weekly  humorous  publication  of  Rio  de  Janeiro,  circulation  50,000, 
These  papers,  as  a  rule,  publish  articles  relating  to  fashion,  litera- 
ture, art,  humor,  etc.,  and  as  they  circulate  among  the  better 
classes  who  buy  imported  wares,  they  naturally  wield  considerable 
influence. 

The  Names,  Circulation,  and  Rates  of  Newspapers. — There  has 
been  published  by  the  Bureau  of  Foreign  Commerce  a  pamphlet 
which  gives  the  names  and  circulation  of  the  principal  papers  in 
Latin  America.  This  publication  contains  other  information  of 
value  to  advertisers,  including  the  width  of  the  columns,  the  rates, 
and  other  details  that  are  essential  to  the  preparation  of  advertise- 
ments. 

How  this  pamphlet  may  be  obtained  is  told  on  page  493  of  the 
Appendix. 

The  American  manufacturer  who  wishes  to  advertise  can  gain  a 
perfect  idea  of  the  newspapers  themselves  by  writing  to  the  editors 
and  asking  for  sample  copies  which  are  gladly  forwarded. 

Miscellaneous  Journals  Relating  to  South  America. — That  the 
interest  in  Latin  American  affairs  is  rapidly  growing  is  proved 
by  the  increasing  number  of  journals  published  in  various  cities 
of  the  United  States,  and  which  circulate  either  in  the  United 
States  or  the  southern  republics.  A  complete  list  of  such  journals 
together  with  their  subscription  rates  will  be  found  on  page  495  of 
the  Appendix. 

Advertising  Rates  and  Circulation  of  Export  Journals. — For  the 
convenience  of  students  of  Latin  American  trade  problems,  the 
advertising  rates  of  the  export  journals  which  circulate  in  Latin 
American  countries  are  given  on  page  498  of  the  Appendix,  to- 
gether with  the  circulation  of  these  journals. 


CHAPTER  XVIIT 

THE   PARCEL   POST   AND   MAIL   ORDER   BUSINESS   WITH  LATIN 

AMERICA 

Introduction. — The  extraordinary  development  of  the  parcel 
post  business  in  the  United  States  has  aroused  many  business  men 
to  the  possibilities  of  extending  their  trade  to  Latin  America.  Be- 
cause of  the  favorable  postage  rates  on  parcels  to  the  southern 
republics,  a  large  volume  of  business  is  already  being  done  and 
the  opportunities  there  are  practically  unlimited. 

The  Use  of  the  Parcel  Post. — Generally  speaking,  the  parcel  post 
service  is  utilized  as  follows : 

1.  By  mail  order  houses  which  ship  merchandise  to  Americans 
and  natives  in  all  the  Latin  American  republics. 

2.  By  manufacturers  and  exporters  for  the  purpose  of  sending 
samples  and  parcels  to  merchants  or  importers.  One  of  the  advan- 
tages particularly  appreciated  by  merchants  is  that  goods  can  be 
imported  at  the  rate  of  twelve  cents  per  pound  in  packages  weigh- 
ing up  to  eleven  pounds,  by  very  direct  mail  routes,  with  almost 
certain  delivery,  and  with  only  the  simplest  possible  customs 
formalities. 

In  some  of  the  countries  parcels  are  delivered  immediately  upon 
arrival  and  in  others  upon  several  days'  notice,  which  is  in  sharp 
contrast  to  the  freight  clearance  through  the  custom  houses,  which 
frequently  takes  much  longer. 

Advantages  of  the  Parcel  Post. — Parcels  sent  by  post  are  not 
burdened  with  overhead  freight  or  handling  charges.  As  a  con- 
sequence, all  articles  that  can  possibly  be  sent  under  eleven  pounds 
limit  and  of  limited  dimensions  are  ordered  by  mail.  In  some 
countries  entire  shipments  can  thus  be  imported  advantageously 
by  a  single  merchant.  In  Honduras  shipments  of  100  or  120  pairs 
of  shoes  and  ten  or  twelve  dozen  silk  shirts  are  often  received  at 
one  time. 

Why  the  Parcel  Post  Is  Valuable  to  Mail  Order  Houses.. — The 

277 


^78  EXPORTING  TO  LATIN  AMEmCA 

parcel  post  is  of  such  importance  to  the  mail  order  house  because 
it  affords  the  cheapest  and  quickest  means  of  shipping  small  arti- 
cles, no  charge  being  made  for  clearance  and  only  the  duty  being 
collected. 

A  further  advantage  consists  in  the  fact  that  the  parcels  are 
returned  in  the  event  that  the  addressee  cannot  be  found.  Par- 
eels  may  be  sent  by  registered  mail  and  the  signature  of  consignee 
obtained,  which  is  sent  to  the  shipper. 

The  Application  of  the  Surtax. — In  some  countries  the  importa- 
tions by  parcel  post  have  assumed  such  proportions  that  a  surtax 
is  charged  thereon.  In  Salvador  ten  per  cent,  of  the  amount  of 
the  customs  and  other  charges  has  been  added  and  thus  the  im- 
porters are  regularly  paying  the  stamp  and  local  taxes  exacted  of 
business  firms.  In  the  case  of  Salvador  the  minimum  amount  was 
fixed  at  50  centavos  (about  45  cents  gold).  This  was  done  be- 
cause of  the  great  number  of  complaints  made  that  concerns  who 
were  not  paying  the  taxes  applicable  to  business  houses  had  been 
importing  merchandise  by  parcel  post  and  thus  avoiding  the  pay- 
ment of  charges  to  the  government,  causing  unfair  competition. 

Advantage  of  the  Mail  Order  Business. — "While  the  growth  of  the 
mail  order  business  with  the  Latin  American  republics  has  been 
rapid,  the  American  manufacturers  have  not  yet  realized  its  pos- 
sibilities in  the  great  trade  fields  of  the  southern  countries.  Only 
in  Mexico  previous  to  the  outbreak  of  the  revolutionary  disturb- 
ances was  the  volume  of  business  done  commensurate  with  the 
opportunities.  The  advantages  of  the  mail  order  trade  at  retail 
may  be  briefly  stated  as  follows: 

1.  The  business  is  transacted  on  practically  a  cash  basis;  in 
almost  every  instance  cash  accompanies  the  orders. 

2.  The  manufacturer  can  reach  consumers  in  haciendas 
(ranches)  and  mining  camps,  likewise  in  remote  or  small  com- 
munities, for  whom  the  local  dealers  cannot  possibly  provide  a 
sufficient  assortment  from  which  to  make  selections. 

3.  In  almost  every  one  of  the  republics  the  number  of  buyers 
in  widely  scattered  points  is  rapidly  increasing.  They  are  often 
foreigners,  particularly  Americans,  with  decided  prejudices  in 
favor  of  imported  products,  and  are  frequently  possessed  of  a 
large  buying  power  l)ecause  of  tlicir  incomes  as  representatives  or 
employees  of  wealthy  interests. 


PAECEL  POST  AND  MAIL  OEDEK  BUSINESS      279 

4.  The  bothersome  consular  regulations  and  custom  house  re- 
quirements which  affect  importation  by  freight  are  avoided  in  the 
case  of  parcels  sent  by  mail. 

5.  The  cost  of  transportation  is  very  reasonable,  particularly  be- 
cause customs  agents  are  not  needed. 

6.  Literature,  catalogs,  circulars,  etc.,  may  be  distributed  with 
almost  no  waste  if  precautions  are  taken  to  insure  the  receipt  by 
the  proper  persons  of  the  matter  that  is  distributed. 

7.  As  the  Latin  Americans  are  very  loyal,  the  mail  order  busi- 
ness with  them  can  be  built  to  large  proportions  if  care  is  taken 
to  fill  orders  promptly,  and  to  pack  and  ship  the  articles  exactly 
as  ordered. 

8.  The  Latin  Americans  are  very  much  impressed  with  our 
novelties  and  articles  of  a  character  that  make  an  unusual  appeal, 
which  can  be  sold  easily  by  mail. 

The  Parcel  Post  Business  with  Consumers. — As  has  already  been 
pointed  out,  a  considerable  volume  of  business  is  already  done  by 
mail  order  houses  who  have  sent  their  catalogs  to  x\mericans  scat- 
tered throughout  Latin  America  and  likewise  to  the  natives  from 
whom  inquiries  for  these  books  have  come.  It  has  been  the  cus- 
tom of  many  Latin  Americans  to  obtain  their  wearing  apparel 
from  European  merchants,  principally  French  and  English  con- 
cerns, and  one  of  the  great  possibilities  of  the  future  lies  in  the 
control  of  this  business. 

The  Parcel  Post  in  Mexico. — Previous  to  the  recent  political 
disturbances  in  the  republic  of  Mexico,  the  parcel  post  business 
with  that  republic  had  assumed  quite  extraordinary  proportions, 
and  it  is  reasonable  to  believe  that  as  soon  as  peace  has  again  been 
established,  the  volume  of  business  will  be  even  greater  than  be- 
fore. This  was  due  to  the  large  number  of  Americans  who  made 
their  homes  in  Mexico,  many  of  them  in  the  isolated  mining  camps 
and  interior  points  where  desirable  merchandise  was  difficult  to 
secure.  The  mail  order  houses  have  served  a  very  useful  purpose 
in  making  it  possible  for  Americans  so  situated  to  obtain  the  mer- 
chandise they  desired  at  a  reasonable  price  and  with  minimum 
effort.  In  this  connection  it  has  been  affirmed  that  one  concern 
alone,  in  the  United  States,  has  had  in  Mexico  13,000  customers 
to  whom  many  thousands  of  parcels  were  sent  annually  by  post. 
Tliis  firm  has  done  practically  all  its  business  with  an  English 


280  EXPORTING  TO  LATIN  AMEEICA 

catalog  and  its  orders  could  undoubtedly  be  greatly  increased  if 
the  catalogs  and  circulars  were  printed  in  Spanish  or  at  least 
accompanied  by  a  key  in  that  language. 

The  parcel  post  business  has  assumed  larger  proportions  in 
Mexico  than  in  any  other  Latin  American  country.  This  applies 
not  only  to  the  business  with  the  United  States  and  European  mail 
order  houses  but  also  with  the  mail  order  houses  located  in  Mexico 
City. 

In  the  other  Latin  American  countries  importations  by  parcel 
post  from  Europe  preponderate  and  purchases  made  of  the  French 
houses  are  particularly  important. 

As  an  example  of  this  business  may  be  cited  Bolivia,  in  which 
country  the  large  department  stores  of  France,  such  as  the  Bon 
Marche,  the  Galeries  Lafayette,  the  Louvre,  and  La  Samari- 
taine,  have  built  up  a  large  business.  This  is  true  also  of  German 
mail  order  houses.  This  is  due  to  the  fact  that  the  needs  of  the 
upper  classes  cannot  be  satisfied  by  the  local  stores  in  the  matter  of 
variety.  Furthermore,  the  profits  exacted  are  extremely  high  and 
American  department  stores  with  well  organized  mail  order  de- 
partments, and  especially  mail  order  houses  in  general,  would 
unquestionably  be  able  to  do  a  large  business  were  the  proper 
effort  made.  The  latter  necessarily  concerns  itself  with  catalogs 
and  price  lists  in  Spanish.  The  fact  that  sales  can  be  made  to 
individual  purchasers  in  the  large  cities  greatly  widens  the  field 
for  those  firms  whose  wares  are  especially  suited  to  the  tastes  and 
use  of  city  buyers. 

The  objects  which  lend  themselves  particularly  to  sale  and  de- 
livery by  parcel  post  are  those  in  which  the  manufacturers  of  the 
United  States  excel.  Among  these  may  be  mentioned  cheap 
watches,  safety  razors,  scissors,  cutlery,  tools,  kodaks,  sporting 
goods,  and  Yankee  notions  in  general.  Novelties  of  all  sorts  are 
also  particularly  salable  by  this  means  as  the  Latin  Americans  are 
quick  to  appreciate  and  take  advantage  of  modern  inventions  and 
novelties. 

The  Small  Manufacturer  and  the  Parcel  Post. — Perhaps  in  no 
other  field  has  the  small  manufacturer  or  merchant  so  great  an 
opportunity  for  the  development  of  business  with  Latin  America 
as  in  the  mail  order  field.  This  is  due  to  the  fact  that  the  smaller 
dealer,  if  in  a  position  to  offer  quality  and  price  equal  to  the  larger 


PARCEL  POST  AND  MAIL  ORDER  BUSINESS      281 

firm,  will  be  on  an  equality  with  the  larger  exporter  who  contem- 
plates a  parcel  post  business. 

How  Parcel  Post  Business  May  Be  Developed. — In  order  to  estab- 
lish a  mail  order  business  with  Latin  America  a  certain  routine 
must  be  followed.  First  of  all,  catalogs  must  be  prepared  that 
will  win  the  confidence  of  the  recipient.  These  must  be  compiled  as 
outlined  in  Chapter  XV. 

The  names  of  possible  buyers  can  be  obtained  in  a  number  of 
ways : 

1.  By  advertising  in  the  American  export  journals  which  cir- 
culate in  the  Latin  American  republics. 

2.  By  advertisements  in  magazines  published  in  the  different 
Latin  American  countries. 

3.  By  advertisements  in  Latin  American  daily  newspapers. 

4.  By  the  use  of  directories,  the  names  being  selected  according 
to  professions  or  classifications  in  harmony  with  the  business  of 
the  mail  order  house. 

5.  By  various  methods  known  to  mail  order  houses,  including 
the  offer  of  prizes  for  names  of  interested  friends,  the  inclosure,  in 
letters  to  customers,  of  blanks  on  which  names  of  individuals  who 
might  be  interested  are  solicited,  etc.  The  latter  is  one  of  the  most 
effective  methods  in  Latin  American  mail  order  business. 

The  Distribution  of  Catalogs. — In  many  of  the  republics  the 
parcel  post  officials  will  cooperate  with  American  firms  who  wish 
to  establish  a  mail  order  business,  by  the  distribution  of  their 
catalogs. 

.  In  the  case  of  Chile,  for  instance,  information  relative  to  such 
distribution  may  be  obtained  by  addressing  the  American  Consul 
at  Valparaiso,  to  whom  catalogs  and  printed  matter  may  be  sent 
for  delivery  to  the  proper  individuals. 

The  Aid  of  Postmasters  and  Local  Officials. — Other  sources  of 
names  for  the  distribution  of  retail  catalogs  are  postmasters  and 
local  officials.  Particularly  in  the  smaller  communities  these  offi- 
cials are  usually  very  willing  to  cooperate  with  American  manu- 
facturers and  exporters.  Letters  properly  couched  will  be  found 
invaluable  aids. 

The  filling  of  orders  exactly  according  to  the  illustrations  and 
descriptions  in  the  catalog  is  absolutely  essential.  The  rules  re- 
garding nonsubstitution,  packing,  and  attention  to  details  apply 


282  EXPORTING  TO  LATIN  AMERICA 

with  even  greater  force  to  the  mail  order  business  where  money  is 
gotten  in  advance,  than  to  shipments  of  merchandise  on  open 
account. 

How  a  Mail  Order  Business  Should  Be  Started. — As  in  all  trade 
relations  with  Latin  America,  the  development  of  a  business  by 
mail  should  be  gradual.  The  merchant  or  manufacturer  who 
feels  he  has  possibilities  should  select,  preferably,  one  or  two 
countries  in  which  to  make  a  start.  The  most  detailed  record  of 
costs  should  be  kept  in  order  that  the  exact  expense  of  obtaining 
orders  may  be  known.  An  entire  line  of  merchandise  should  not 
be  illustrated.  It  is  preferable  to  select  a  few  of  the  most  prom- 
ising items  and  properly  catalog  these,  rather  than  to  go  to  a 
large  expense  which  may  not  be  productive  of  results.  Extreme 
caution  is  advisable.  Even  though  the  manufacturer  is  convinced 
that  the  sales  will  be  large,  experimental  mailings  should  always 
be  made.  Large  editions  should  not  be  undertaken  until  the  re- 
sults from  a  small  mailing  have  been  definitely  ascertained. 

The  confidence  of  prospective  buyers  must  be  won  by  every  dem- 
onstration of  good  faith.  The  Latin  American,  particularly  the 
consumer,  is  extremely  conservative  and  suspicious.  For  that  rea- 
son it  is  highly  important  that  the  catalog  and  literature  should 
bear  every  evidence  of  genuineness  and  reliability.  He  should  be 
convinced  of  the  good  will  and  standing  of  the  house  to  whom 
he  is  to  send  a  remittance,  else  he  may  hesitate  to  forward  it. 

What  a  Parcel  Post  Catalog  Should  Contain. — In  preparing  a 
catalog,  whether  large  or  small  and  whether  booklet  or  circular, 
there  are  certain  fundamental  rules  governing  its  publication.  It 
must  be  borne  in  mind  that  a  low  selling  cost  can  be  insured  (in 
other  words,  profitable  sales  can  only  be  made),  if  a  sufficient  num- 
ber of  orders  are  received.  The  success  of  a  catalog  will  be  deter- 
mined by  the  following  factors: 

1.  That  it  contains  statements  which  absolutely  prove  to  the 
Latin  American  consumer  the  reliability  of  the  house  to  whom 
remittance  is  to  be  made.  This  can  be  achieved  by  the  reproduc- 
tion of  letters  by  banks  to  the  effect  that  the  mail  order  house  is 
in  good  repute  and  will  comply  with  all  the  promises  made  in  its 
literature. 

2.  That  the  catalog  should  also  contain  reproductions  of  let- 
ters to  the  same  effect  by  the  consular  representatives  of  the  Latin 


PARCEL  POST  AND  MAIL  ORDEE  BUSINESS      283 

American  republics,  preferably  in  the  city  where  the  merchant  is 
located,  which  will  likewise  prove  of  great  value.  In  the  prepara- 
tion of  a  catalog  or  circular  the  best  models  to  follow  are  those 
of  the  large  and  successful  mail  order  institutions  of  Chicago  and 
New  York. 

The  Illustrations  and  Descriptions. — The  illustrations  and  de- 
scriptions in  mail  order  catalogs  used  in  Latin  America  are  of 
greater  importance  than  those  in  the  ones  circulated  in  the  United 
States.  They  serve  as  the  only  means  by  which  the  consumer  can 
form  an  idea  of  the  merchandise  that  is  offered ;  both  therefore 
should  be  absolutely  exact.  The  terms  used  should  be  simple  and 
plain;  all  technical  wording  should  be  omitted  in  the  translation, 
which  should  be  both  accurate  and  good  Spanish.  The  exact  weight 
of  every  article  should  be  stated  and,  if  possible,  the  price  of  the 
item  illustrated  should  include  the  postage  required  to  carry  it. 
Prices  should  be  stated  in  American  gold  and,  if  at  all  possible, 
with  their  equivalent  in  the  currency  of  the  country  to  which  the 
catalog  is  sent.  This  is  hardly  practical  except  when  very  large 
editions  are  mailed  to  the  countries  in  which  the  currency  is  on 
a  sound  basis  and  not  subject  to  fluctuations.  Promptitude  in 
filling  orders  accompanied  by  cash  is  absolutely  essential  in  order 
that  the  suspicion  of  the  consumer  may  not  be  aroused.  If  these 
methods  are  followed,  the  possibilities  of  developing  a  business  with 
Latin  America  are  almost  unlimited. 

The  Workings  of  the  Parcel  Post. — The  details  in  connection 
with  shipping  packages  by  parcels  post  are  extremely  simple.  The 
parcel  is  carefully  prepared.  In  packing,  the  same  care  should  be 
taken  as  in  the  case  of  shipments  by  freight,  especially  where  the 
packages  are  for  interior  points  and  are  subject  to  damage  by  rain, 
humidity,  or  tropical  conditions.  This  is  particularly  essential 
where  parcels  are  sent  to  interior  points  in  mail  bags  carried  on 
muleback.  These  are  subject  to  wetting  not  only  in  the  torrential 
rains  but  likewise  in  the  fording  of  streams.  The  parcel  is  taken  to 
the  post  office  bearing  the  requisite  postage  of  twelve  cents  a  pound, 
together  with  the  name  and  address  of  the  shipper  and  the  address 
of  the  consignee.  Attached  to  the  parcel  is  a  very  simple  customs 
declaration  which  takes  the  place  of  the  invoice.  A  mailing  receipt 
is  given  by  the  post  office  for  the  parcel  and  the  transaction  is 
completed.    When  shipments  are  made  to  Latin  American  countries 


284  EXPORTING  TO  LATIN  AMERICA 

where  parcels  must  be  carried  by  steamship  it  is  important  that  they 
be  covered  by  marine  insurance  since;,  if  steamers  sink,  the  post 
office  is  not  responsible  for  loss. 

While  parcels  sent  by  post  are  rarely  lost,  it  is  nevertheless  also 
advisable  to  insure  them  against  loss  and  theft,  as  both  occur  in 
doing  business  with  Latin  America. 

To  some  countries,  as  in  the  case  of  Venezuela,  it  is  necessary, 
when  mailing  parcels,  to  accompany  each  shipment  with  three 
copies  of  a  declaration,  on  which  are  set  forth  the  name  of  the 
article,  the  number  of  packages  and  the  weight  and  value.  These 
blanks  may  be  obtained  in  any  United  States  post  office.  All  regu- 
lations relating  to  the  parcel  post  may  be  found  in  the  Official 
Postal  Guide,  which  may  be  purchased  in  any  city  or  consulted 
at  any  post  office. 

The  C.  0.  B.  Feature. — In  certain  of  the  countries,  as  Chile,  for 
example,  the  American  mail  order  business  is  not  so  heavy  as  it 
might  be  were  the  same  rules  in  effect  between  this  country  and 
Chile  as  those  which  exist  between  the  latter  republic  and  the 
principal  countries  of  Europe.  One  of  these  is  the  c.  o.  d.  feature 
which  makes  it  possible  for  the  purchaser  to  examine  parcels 
before  paying  for  them.  The  principal  European  export  houses 
make  c.  o.  d.  shipments  to  Chile  exacting  advance  payments  of  25 
per  cent.,  which  protect  them  in  the  event  that  shipments  are  re- 
turned or  refused.  By  this  means  the  number  of  packages  returned 
has  been  greatly  reduced.  The  establishment  of  a  similar  service 
would  give  considerable  impetus  to  American  trade,  and  a  large 
business  would  unquestionably  result.  Another  advantage  would 
be  that  American  firms  which  are  not  now  making  shipments 
to  Latin  American  countries  would  be  enabled  to  obtain  business 
from  the  conservative  buyers  in  those  republics  who  object  to 
making  remittances  until  they  can  see  the  merchandise. 

Delivery  Charges  on  Parcel  Post  Packages. — A  factor  that  must 
be  considered  in  connection  with  the  parcel  post  business  is  that 
of  the  delivery  charge.  One  of  the  rules  of  the  Mexican  postal 
service  provides  for  the  collection  of  a  fee  on  parcels  received  by 
post  from  foreign  countries.  Packages  received  from  the  United 
States  are  assessed  more  than,  tliose  from  any  other  country.  The 
reason  is  that  a  maximum  weight  (eleven  pounds)  parcel  post 
package  from  the  United  States  has  a  Mexican  postal  charge  on  it 


PARCEL  POST  AND  MAIL  ORDER  BUSINESS     285 

of  45  cents  Mexican  currency,  while  the  charge  on  the  same  package 
from  England  and  France  is  10  cents,  and  if  from  Germany,  only 
5  cents.  This  difference  often  causes  orders  to  be  sent  to  Europe 
instead  of  to  the  United  States.  From  England  and  France  the 
charge  is  10  cents  Mexican  or  $0,498  American  money  per  pack- 
age. 

Careful  Wrapping  and  Addressing. — As  the  mails,  like  freight 
to  Latin  America,  are  often  roughly  handled,  it  is  absolutely  essen- 
tial that  every  article  be  securely  packed  so  that  it  may  be  properly 
delivered.  It  is  indispensable,  however,  that  it  be  so  wrapped  or 
packed  that  its  contents  may  be  easily  seen  and  examined  by  post- 
masters and  custom  house  officials.  No  package  should  ever  be 
wrapped  in  light  flimsy  paper,  or  packed  in  pasteboard  boxes,  as 
it  will  not  be  accepted  at  a  post  office.  Post  office  regulations  also 
provide  that  boxes  with  lids  screwed  or  nailed  on  may  be  used, 
and  packages  may  be  closed  by  means  of  sewing  provided  they  are 
presented  to  the  post  office  open  for  inspection.  Great  care  should 
be  taken  to  wrap  pmcels  properly,  or  they  will  not  be  forwarded. 

Necessity  for  Attention  to  Packing. — It  must  be  remembered 
that  parcels  are  frequently  carried  several  thousand  miles  and  care 
should  be  taken  that  they  do  not  reach  destination  in  a  dilapidated 
condition,  with  consequent  loss  to  contents.  Oilcloth  or  waterproof 
material  to  protect  contents  against  dampness  should  invariably 
be  used,  even  when  packed  inside  a  strong  container.  Many  Eu- 
ropean exporters  employ  light  wood  boxes  when  mailing  parcels, 
and  the  outside  of  cloth  or  oilpaper  is  frequently  sewed,  although 
shipments  thus  made  should  also  be  insured  to  guard  against  loss. 

The  Importance  of  Measuring  and  Weighing  Parcels. — There 
are  certain  factors  which  every  exporter  who  uses  the  parcel  post 
service  should  take  into  account.  Parcels  must  always  conform  in 
dimension,  weight,  and  value  to  the  laws  of  the  country  to  which 
they  are  addressed.  A  parcel  not  over  three  feet  six  inches  in 
length  may  measure  as  much  as  two  feet  six  inches  in  girth,  or 
round  its  thickest  part ;  a  shorter  parcel  may  be  thicker.  Thus, 
if  it  measure  three  feet  in  length,  it  may  measure  three  feet  in 
girth  or  round  its  thickest  part.  In  the  case  of  parcels  for  Colom- 
bia and  Mexico,  the  length  cannot  exceed  two  feet,  no  matter  how 
small  may  be  the  girth,  and  the  girth  cannot  exceed  four  feet,  no 
matter  how  short  the  parcel  may  be. 


28(3  EXPOETING  TO  LATIN  AMERICA 

Business  in  Certain  Countries  Handicapped. — One  of  the  factors 
which  militate  against  the  developmeut  of  the  mail  order  business 
between  some  of  the  republics  and  the  United  States  is  the  lack  of 
money  order  agreements,  which  makes  it  difficult  for  purchasers 
to  remit.  In  such  cases  purchasers  often  send  English  sovereigns 
or  gold  coins  of  a  country  of  which  the  currency  can  be  converted 
into  American  money  without  too  great  a  loss. 

Another  drawback  in  certain  of  the  republics  is  the  lack  of  a 
stable  exchange.  Because  of  fluctuations  it  is  difficult  for  the  pur- 
chaser to  know  the  rate  which  will  be  paid. 

How  Exchange  Difficulties  May  Be  Overcome. — Some  American 
mail  order  houses  specify  in  their  advertisements  the  rate  of  ex- 
change at  which  they  will  accept  the  currency  of  the  country.  As 
they  have  previously  arranged  with  agents  in  New  York  City  for 
this  conversion  they  can  do  this  without  fear,  although  latterly, 
because  of  the  European  War,  there  have  been  wide  fluctuations. 
Another  means  of  overcoming  this  difficulty  is  the  appointment  of 
an  agent  in  one  of  the  principal  cities,  to  whom  remittances  may 
be  made  for  the  credit  of  the  purchaser,  and  the  agent  then  remits 
the  proceeds  to  the  American  mail  order  house. 

Authorized  Offices  for  Importations. — Although  parcel  post  ar- 
rangements are  in  efi:ect  with  the  countries  mentioned,  arrange- 
ments for  the  payment  of  duty  do  not  extend  to  every  post  office 
in  these  countries.  In  some  of  these  the  duty  may  be  paid  only 
in  certain  offices  and  it  is  necessary  for  the  individuals  who  order 
from  abroad  to  arrange  to  obtain  the  importations  from  such  offices. 
This  is  notably  the  case  in  Santo  Domingo,  but  in  inland  post  offices 
where  there  are  no  customs  houses  the  receiver  must  appoint  an 
agent  to  examine  the  package  at  the  port  of  entry  and  to  pay  the 
duty  before  it  can  be  forwarded  to  destination.  The  extension  of 
this  privilege  to  other  places  will  unquestional)ly  aid  materially  in 
the  development  of  the  parcel  post  business  witli  the  United  States. 

Parcel  Post  to  Latin  America. — A  list  of  the  Latin  American 
republics  to  which  parcel  post  packages  may  be  sent,  together  with 
the  rules  governing  their  sending,  will  be  found  on  page  525  of  the 
Appendix.  On  page  524  there  is  also  a  list  of  the  countries  to  which 
international  money  orders  may  be  sent.  Tlio  parcel  post  rate  is 
twelve  cents  for  each  pound  or  fraction  of  a  pound. 


CHAPTER  XIX 

TRADE-MARKS,    LAWS    AND   REGULATIONS   IN  LATIN  AMERICA 

Introduction. — The  American  merchant  who  seeks  to  establish 
a  business  in  Latin  America  should  bear  in  mind  the  value  of  a 
trade-mark.  ]\Iost  manufacturers  who  extend  their  activities  to 
the  southern  countries  already  have  a  trade-mark  which,  has  possi- 
bly been  an  important  factor  in  the  upbuilding  of  the  domestic 
trade.  To  such  manufacturers,  the  value  of  protecting  a  trade- 
mark even  before  a  new  field  is  entered  need  not  be  dwelt  upon. 
For  the  manufacturer  who  wishes  to  create  a  permanent  business 
in  a  Latin  American  country,  a  suitable  trade-mark  is  of  the 
liighest  value. 

The  Importance  of  Trade-marks. — Many  concerns  which  began 
to  do  business  in  the  Latin  American  field  after  achieving  success 
in  the  domestic  market  learned  that  their  trade-mark  which  was  so 
successful  at  home  was  entirely  inappropriate  for  the  Latin  Ameri- 
can field.  This  also  applied  to  names  which  had  become  a  by- 
word in  the  United  States,  but  were  absolutely  inappropriate  in 
the  southern  republics  because  of  the  difficulty  of  pronouncing 
them.  The  manufacturer  who  has  never  done  Latin  American 
business  possesses  therefore  a  certain  advantage  in  that  he  can 
profit  by  the  mistakes  of  others  and  avoid  seriously  handicapping 
himself  in  the  efforts  for  new  business.  The  right  trade-mark 
should  be  selected  at  the  beginning  because  any  campaign  under- 
taken must  be  based  on  the  determination  to  create  a  permanent 
demand  and  money  expended  in  familiarizing  the  public  with  the 
trade-mark  will  not  then  be  lost. 

Qualifications  of  a  Trade-mark. — A  trade-mark,  to  be  of  the  most 
lasting  value,  should  be  easily  pronounceable.  If  at  all  possible, 
it  should  be  a  word  that  has  the  same  significance  in  English  or 
Spanish.  Examples  of  this  are  found  in  the  success  of  interna- 
tional brands  such  as  Singer  (sewing  machines),  Oliver  (type- 
writers), National    (cash  registers),  Colt    (revolvers),  Evinrude 

387 


288  EXPORTING  TO  LATIN  AMERICA 

(motors).  Regal  (engines),  etc.  Words  of  this  character  are  all 
easily  pronounceable  in  the  Spanish  fashion.  Words  in  which  the 
letters  W  or  K  appear  should  never  be  used  because  these  letters 
are  not  found  in  the  Spanish  alphabet. 

The  Value  of  the  Design  and  Color. — The  greatest  need  of  a 
trade-mark  in  Latin  America  is  simplicity.  This  is  particularly 
desirable  when  appeal  is  to  be  made  to  the  masses  of  the  people. 
An  article  of  merit  which  carries  a  trade-mark  is  likely  to  be 
copied  by  other  manufacturers,  particularly  by  European  houses; 
hence  a  pictorial  design  which  has  strong  individual  features  should 
be  selected.  The  natives  become  familiar  with  such  a  trade-mark 
and  invariably  call  for  the  article  with  that  distinguishing  feature. 
The  importance  of  the  right  brand  can  easily  be  appreciated.  A 
fish,  an  animal,  a  bird  or  other  pictorial  design  which  can  be  com- 
bined with  a  name  easily  pronounceable  in  Spanish  is  the  best 
combination. 

The  Importance  of  Colors. — Vivid  or  loud  colors  are  the  ones 
most  appreciated  in  the  Latin  American  countries.  When  colors 
are  used  the  color  scheme  should  be  a  simple  one,  strongly  devised, 
in  order  that  the  trade-mark  may  make  a  lasting  impression. 
Carmine  in  combination  with  green,  a  black  with  yellow,  and  a 
blue  with  white  are  examples. 

The  Featuring  of  a  Trade-mark. — Once  the  trade-mark  has  been 
decided  upon,  its  use  should  be  continuous  and  it  should  not  be 
changed.  Even  the  slightest  variation,  particularly  in  color  or 
design,  arouses  the  suspicion  of  the  natives,  and  this  is  particularly 
the  case  when  an  article  has  had  a  continuous  sale.  The  trade- 
mark should  be  used  on  all  literature,  invoices,  envelopes,  hangers, 
circulars,  catalogs,  etc.  The  value  of  a  trade-mark  lies  in  its 
constant  repetition  and  a  preliminary  campaign  of  advertising  by 
mail  has  an  important  effect  in  educating  the  dealer.  Work  of 
this  sort  possesses  unquestioned  value  in  preparing  the  ground  for 
the  traveling  representative  of  a  new  line  of  goods. 

The  Necessity  for  Registering  a  Trade-mark. — There  are  many 
unscrupulous  individuals  who  wish  to  take  advantage  of  trade- 
marks to  further  their  own  interests.  It  is  for  this  reason  that  the 
trade-mark  of  any  product  or  article  on  which  a  large  business 
may  be  built  up  should  be  registered.  This  is  particularly  so 
in  the  larger  Latin  American  republics  in  which  the  volume  of 


LAWS  AND  REGtTLATIONS  FOR  TEADE-MAKKS     289 

business  may  assume  considerable  proportions.  Many  manufac- 
turers wlio  have  not  taken  this  into  consideration  when  estab- 
lishing business  in  Latin  America  have  had  to  pay  dearly  for  their 
oversight. 

How  Trade-marks  Are  Stolen. — The  trade-mark  laws  of  Latin 
America  dilfer  materially  from  those  of  the  United  States,  and  in 
many  of  the  southern  republics  the  one  who  first  registers  the 
trade-mark  is  granted  title  thereto,  no  matter  if  he  has  no  other 
interest  therein.  The  result  has  been  the  registration,  by  unprin- 
cipled Latin  Americans,  of  trade-marks  which  in  many  instances 
apply  to  goods  that  have  not  previously  been  imported,  and  which 
are  registered  as  a  speculation. 

How  Ilnwary  Americans  Are  Mulcted. — After  having  obtained 
title  of  the  trade-mark  by  registration,  the  trade-mark  thief  is  in  a 
position  to  take  advantage  of  the  owner  in  the  event  that  the  latter 
makes  shipments  to  the  countries  in  which  the  brand  has  been 
registered.  This  has  frequently  been  done  and  manufacturers  who 
have  not  taken  the  precaution  to  register  their  trade-mark  found 
to  their  sorrow  that  in  the  eyes  of  the  law  they  had  no  right  to 
use  their  own  brand  and  were  either  compelled  to  abandon  it  or  to 
buy  the  rights  for  its  use  from  the  individual  who  had  obtained 
the  title.  When  such  unfortunate  manufacturers  have  sought  to 
protect  their  interests  they  found  that  the  necessary  legal  action 
was  a  very  costly  one  and  the  source  of  no  end  of  trouble.  As  the 
trade-mark  rights  in  several  of  the  best  fields  for  American  products 
in  Latin  America  are  dependent  upon  registration,  it  is  highly 
essential  that  registration  should  not  be  overlooked  or  delayed.  If 
this  is  not  done,  and  the  brand  is  registered  by  a  trade-mark  thief, 
a  seizure  of  goods  bearing  the  mark  may  follow  their  arrival  at  a 
custom  house.  Even  though  a  brand  may  not  be  looked  upon  as 
valuable,  it  should  nevertheless  be  registered  if  manufacturers 
expect  to  use  it  on  merchandise  shipped  to  Latin  America,  else 
difficulties  may  ensue. 

Importance  of  Safeguarding  the  Registration. — Before  the 
owner  gives  a  power  of  attorney  for  the  registration  of  his  trade- 
mark, he  should  make  certain  that  his  interests  are  in  the  hands 
of  a  reliable  trade-mark  specialist  fully  acquainted  with  conditions 
and  understanding  perfectly  all  the  rules  and  regulations  governing 
them.    The  sfreatest  care  should  be  exercised  in  selecting  an  agent 


290  EXPORTINCt  TO  LATIN  AMEEICA 

for  the  registration  of  trade-marks,  inasmuch  as  grave  conse- 
quences may  ensue  from  misplaced  confidence.  In  signing  a  power 
of  attorney  which  is  given  for  the  purpose  of  proceeding  with  the 
work,  the  manufacturer  must  make  sure  that  the  document  grants 
authority  only  for  that  specific  purpose,  and  that  the  trade-mark 
is  to  be  registered  in  the  name  of  the  manufacturer.  It  is  not  suffi- 
cient to  select  a  lawyer  as  in  many  cases  even  responsible  attorneys 
are  incapable  of  attending  to  the  detail  in  connection  with  a  trade- 
mark. Unscrupulous  agents  sometimes  obtain  power  of  attorney 
authorizing  the  registration  of  the  trade-mark  in  their  own  name 
rather  than  in  that  of  the  manufacturer. 

Obtaining  Reliable  Agents  for  Registration. — The  best  method 
of  obtaining  an  agent  is  for  a  personal  representative  of  the  manu- 
facturer to  choose  and  appoint  a  trade-mark  agent  or  lawyer  in 
each  of  the  capitals.  This  is,  of  course,  not  practical  except  in  rare 
cases,  but  should  be  done  whenever  possible.  Before  making  such 
an  appointment  the  advice  should  be  asked  of  the  most  reliable 
business  men,  the  banks,  the  local  consuls  and  other  officials. 
Various  means  may  be  employed  to  reach  competent  specialists  who 
can  properly  serve  American  manufacturers.  Following  are  some 
of  them: 

1.  Attorneys  or  specialists  recommended  by  the  Philadelphia 
Commercial  Museum,  the  National  Association  of  Manufacturers, 
the  American  Exporters'  Association,  etc. 

2.  Firms  or  lawyers  suggested  by  American  Consuls  who  are 
asked  for  this  information. 

3.  Bankers  or  representative  banking  firms  who  may  be  asked 
to  suggest  reliable  men. 

Local  Representatives  Desirable. — It  is  highly  desirable  that  the 
registration  of  trade-marks  and  the  obtaining  of  patents  shall  be 
arranged  by  experts  on  the  ground.  This  is  because  of  the  fact 
that  many  forms  must  be  properly  supplied  and  signed,  innumer- 
able details  handled,  and  the  work  of  the  registration  office  ex- 
pedited. In  a  general  way,  regulations  relative  to  trade-marks, 
including  the  description,  drawings,  and  other  terms,  are  similar 
in  all  the  countries,  yet  there  is  such  a  difference  that  the  value  of 
expert  service  in  this  respect  will  be  appreciated  by  those  who  find 
it  necessary  to  register  brands.  The  following  table  will  be  of 
interest  to  those  who  desire  information  relative  to  registration. 


DOCUMENTS  REQUIRED  FOR  REGISTRATION  OF  TRADE-MARKS' 


Country 


Argentina.  . 


Bolivia . 


Brazil. 


Chile. 


Cclombia 


Cuba. 


Costa  Rica. 


Ecuador . 


Guatemala. . . 


Honduras. 


Mexico . 


Nicaragua . 


Panama . 


Paraguay 


Peru. 


Santo  Do- 
mingo. . . 


Uruguay . 


Venezuela . 


Power  of  Attorney 


Signed  by  applicant  before 
notary  public  legalized 
by  Argentine  Consul. 

Signed  by  applicant  before 
notary  public  legalized 
by  Bolivian  Consul. 

Signed  by  applicant  before 
notary  public  legalized 
by  Brazilian  Consul. 

Signed  by  applicant  before 
notary  public  legalized 
by  Chilean  Consul. 

Signed  by  applicant  before 
notary  pubUc  legalized 
by  Colombian  Consul 


Signed  by  applicant  before 
notary  public  legalized 
by  Cuban  Consul. 

Signed  by  applicant  before 
notary  public  legalized 
by  Costa  Rican  Consul 

Signed  by  applicant  before 
notary  public  legalized 
by  Ecuadorian  Consul. 


Signed  by  applicant  before 
notary  public  legalized 
by  Guatemalan  Consul. 

Signed  by  applicant  before 
notary  public  legalized 
by  Honduran  Consul. 

Signed  by  applicant  and 
two  witnesses. 


Signed  by  applicant  before 
notary  public  legalized 
by  Nicaraguan  Consul. 

Signed  by  applicant  before 
notary  public  legalized 
by  Panamanian  Consul. 

Signed  by  applicant  before 
notary  public  legalized 
by  Paraguayan  Consul. 

Signed  by  applicant  before 
notary  public  legalized 
by  Peruvian  Consul. 

Signed  by  applicant  before 
notary  public  legalized 
by  Dominican  Consul. 

Signed  by  applicant  before 
notary  public  legalized 
by  Uruguayan  Consul. 

Signed  by  applicant  before 
notary  public  legalized 
by  Venezuelan  Consul. 


Declaration 


Certified  copy  of  home 
registration. 


Certified  copy  of  home 
registration  legalized 
by  Colombian  Con- 
sid. 

Certified  copy  of  home 
registration  legalized 
by  Cuban  Consul. 


Certified  copy  of  home 
registration  legalized 
by  Ecuadorian  Con 
sul. 

Certified  copy  of  home 
registration  legalized 
by  Guatemalan  Con 
sul. 

Certified  copy  of  home 
registration  legalized 
by  Honduran  Consul 


Certified  copy  of  home 
registration  legalized 
by  Panamanian  Con- 
sul. 


Certified  copy  of  home 
registration  legalized 
by  Dominican  Con- 
sul. 

Certified  copy  of  home 
registration  legalized 
by  Uruguayan  Con- 
sul. 

Certified  copy  of  home 
registration  legalized 
by  Venezuelan  Con- 
sul. 


Electros 


1  not  over  2"  x  2' 


1  not  over  2"  x  2'' 


1  not  over  2"  x  2", 
applicant's  name 
and      place      of 
manufacture. 
1 


1  not  over  2"  x  2" 


Fac- 
similea 


10 


10 


12 


20 


12 


12 


10 


'From  System,  October,  1914. 


291 


203  EXPORTING  TO  LATIN  AMERICA 

Important  Details   Regarding  Trade-mark   Registration. — The 

following  additional  information  concerning  the  registration  of 
trade-marks  in  the  Latin  American  republics  will  be  found  of 
value.  In  the  case  of  each  republic  there  are  certain  formalities 
which  must  be  complied  with  and  these  can  be  supplied  by  the 
agent  to  whom  the  registration  of  the  trade-mark  is  given.  A 
certificate  of  registration  in  the  country  of  origin  will  be  found 
valuable. 

Argentina. — Office  of  registration. — La  Direccion  de  Patentes  y 
Marcas,  Buenos  Aires. 

Duration. — Ten  years;  renewable. 

Fees. — Registration  in  one  class,  50  pesos,  Argentine  currency; 
registration  in  each  additional  class,  44  pesos;  renewal,  same; 
extra  certificates,  each  5  pesos.  Registration  is  essential.  Pre- 
vious registration  not  required.  The  Argentine  law  vests  rights 
to  trade-mark  in  individual  who  first  registers  it.  Paper  peso  = 
$0.4246. 

Bolivia. — Office  of  registration. — Ministerio  de  Instruccion  Pub- 
lica  y  Fomento,  Notario  de  Hacienda,  La  Paz. 

Duration. — Indefinite. 

Fees. — Tax  of  5  bolivianos  per  year.  Registration  is  essential. 
Previous  registration  not  required.  The  Bolivian  law  vests  right 
to  trade-mark  in  individual  who  first  registers  it.  Boliviano^: 
$0,389. 

Brazil. — Office  of  registration. — Junta  Commercial,  Rio  de 
Janeiro. 

Duration. — Fifteen  years;  renewable. 

Fees. — Registration,  5  milreis  in  stamps;  renewal,  same.  Regis- 
tration essential.  Previous  registration  not  required.  The  Brazil- 
ian law  vests  rights  to  trade-mark  in  individual  who  first  registers 
it.  If  trade-mark  has  been  previously  used  later  registration  is 
void.     Paper  milreis,  fluctuating,  worth  about  $0.25. 

Chile. — Office  of  registration. — Sociedad  Nacional  de  Agricul- 
tura,  Santiago. 

Duration. — Ten  years;  renewable. 

Fees. — Marca  de  fahrica  (trade-mark),  13  pesos;  marca  comer- 
cial  (dealer's  mark),  3  pesos;  renewal,  same  as  for  registration; 
certificates,  1  peso.  Registration  is  not  essential  but  desirable. 
Previous  registration  not  required.    The  Chilean  law  vests  rights  to 


LAWS  AND  EEGULATIONS  FOE  TRADE-MARKS     293 

trade-mark  in  individual  who  first  registers  it.  Paper  peso,  fluc- 
tuating, now  Avorth  about  $0.16. 

Colombia. — Office  of  registration. — Despacho  de  Hacienda,  Bo- 
gota. 

Duration. — Twenty  years ;  renewable. 

Fees. — Registration  of  mark,  15  dollars;  renewal,  30  dollars. 
Registration  is  essential.  Previous  registration  is  required.  The 
Colombian  law  vests  rights  to  trade-mark  in  individual  who  first 
registers  it.     Gold  dollar=$l. 

Costa  Rica. — Office  of  registration. — Secretaria  de  Fomento,  San 
Jose. 

Duration. — Fifteen  years;  renewable  for  periods  of  10  years. 

Fees. — The  following  stamp  taxes  are  provided  for  in  connection 
with  the  registration  of  trade-marks :  Each  copy  of  the  model  of 
the  mark,  5  colones;  certificate  of  inscription,  2  colones;  inscrip- 
tion, 5  colones.  Registration  not  essential  but  desirable.  Previous 
registration  not  required.  The  Costa  Rican  law  vests  rights  to 
trade-mark  to  any  using  it.     Colon=$0.465. 

Cuba. — Office  of  registration. — Secretaria  de  Agricultura,  Indus- 
tria,  Comercio,  y  Obras  Publicas,  Habana. 

Duration. — Fifteen  years;  renewable. 

Fees. — Registration,  $12.50;  renewal,  same. 

Registration  not  essential  but  desirable.  Previous  registration 
is  required.  The  Cuban  law  vests  right  to  trade-mark  to  individual 
who  first  registers  it. 

Ecuador. — Office  of  registration. — Ministerio  de  Hacienda, 
Quito. 

Duration. — Twenty  years;  renewable  for  periods  of  15  years. 

Fees. — Registration,  25  sucres;  publication,  12  sucres;  stamped 
paper,  2.40  sucres;  total,  39.40  sucres.  Renewal,  same,  except  that 
no  publication  is  required.  Registration  is  desirable  but  not  essen- 
tial. Not  necessary  to  have  been  previously  registered.  Right  to 
trade-mark  is  vested  in  individual  first  registering  it.  No  legal 
proceedings  can  be  instituted  prior  to  registration  of  trade-mark, 
in  case  infringement  is  attempted.    Sucre^$0.487. 

Gitatemala. — Office  of  registration. — Secretaria  de  Estado  en  el 
Despacho  de  Fomento,  Oficina  de  ]\Iarcas,  Guatemala. 

Duration. — Ten  years;  renewable. 

Fees. — Registration  and  certificate,  30  pesos;  additional  copies 


294  EXPORTING  TO  LATIN  AMERICA 

of  certificate,  5  pesos;  publication,  50  pesos;  autlientications 
(usually  two),  each,  $3  gold.  Not  essential  to  register  trade-mark, 
but  desirable.  Necessary  to  have  been  previously  registered.  Gua- 
temalan law  vests  right  to  trade-mark  in  any  individual  applying 
for  it.     Paper  peso,  fluctuating,  about  $0,025. 

Honduras. — Office  of  registration. — Secretaria  de  Fomento,  Te- 
gucigalpa. 

Duration. — Indefinite. 

Fees. — None  provided  by  law.  Translation,  publication,  and 
stamps  about  $35  gold.  Registration  not  essential  but  desirable. 
Necessary  to  have  been  previously  registered.  Individual  first  us- 
ing trade-mark  obtains  right  thereto.  If  trade-mark  has  been 
previously  used,  later  registration  void.    Peso=$0.363, 

Mexico. — Office  of  registration. — Secretaria  de  Estado  y  del 
Despacho  de  Fomento,  Colonizacion,  e  Industria;  Oficina  de  Pa- 
tentes  y  Marcas,  Mexico  City. 

Duration. — Twenty  years;  renewable. 

Fees. — Registration,  5  pesos;  renewal,  same.  Desirable  to  regis- 
ter but  not  essential.  Not  necessary  to  have  been  previously  regis- 
tered. The  Mexican  law  vests  right  to  trade-mark  to  individual 
owning  it.  No  legal  proceedings  can  be  instituted  prior  to  regis- 
tration of  trade-mark  in  case  infringement  is  attempted.  Gold 
peso=$0.498. 

Nicaragua. — Office  of  registration. — Ministerio  de  Fomento, 
Managua. 

Duration. — Ten  years ;  renewable. 

Fees. — Registration,  25  pesos;  renewal,  same;  certificates,  1  peso. 
It  is  essential  to  register  trade-mark.  Not  necessary  to  have  been 
previously  registered.  Nicaraguan  law  vests  right  to  trade-mark 
in  individual  first  applying  for  it.     Peso=$0.08. 

Panama. — Office  of  registration. — Secretaria  de  Fomento,  Ramo 
de  Patentes  y  Marcas,  Panama. 

Duration. — Ten  years;  renewable. 

Fees. — Registration,  25  balboas;  renewal,  20  balboas;  for  articles 
of  domestic  manufacture  or  production  the  fees  are  one-half  the 
above.  Registration  not  essential  but  desirable.  Necessary  to  have 
been  previously  registered.  Right  to  trade-mark  is  vested  in  any 
individual  using  it.  If  trade-mark  has  been  previously  used,  later 
registration  is  void.     Balboa=$l. 


LAWS  AND  EEGULATIONS  FOR  TRADE-MARKS     295 

Paraguay. — Office  of  registration. — Junta  de  Credito  Publico, 
Asuncion. 

Duration. — Ten  years;  renewable. 

Fees. — Registration  of  marks  of  foreign  origin,  20  pesos  gold; 
of  domestic  origin,  50  pesos  currency;  each  extra  certificate,  20 
pesos  currency,  with  1-peso  stamp  on  first  page,  0.25  peso  on  each 
additional  page;  renewal,  same  as  registration.  Essential  to  regis- 
ter trade-mark.  Previous  registration  not  necessary.  Right  to 
trade-mark  is  vested  in  individual  first  applying  for  same.  Gold 
peso=$0.965  ;  paper  peso=about  $0,062. 

Peru. — Office  of  registration. — Ministerio  de  Fomento,  Lima,  or 
any  Peruvian  consulate  general. 

Duration. — Ten  years;  renewable. 

Fees. — Federal  registration  fee,  25  soles;  publication  of  notices, 

4  soles;  stamped  paper,  1.20  soles  if  registered  with  a  Peruvian 
consul;  if  registered  in  Peru  the  fees  are  higher.  Stamped  paper, 
0.10  to  0.40  sol  per  sheet.  Registration  is  essential.  Not  necessary 
to  have  been  previously  registered.  Any  individual  using  trade- 
mark becomes  owner.     Sol=l-10  pound  sterling=$0.4866. 

Salvador. — Office  of  registration. — Oficina  de  Patentes,  San  Sal- 
vador. 

Duration. — Twenty  years;  renewable. 

Fees. — Registration  of  foreign  marks,  10  pesos;  domestic  marks, 

5  pesos;  annual  tax  on  foreign  marks,  5  pesos;  domestic  marks, 
2  pesos ;  extra  certificates,  5  pesos ;  publication,  not  over  5  pesos ; 
stamped  paper,  0.10  to  0.25  peso  per  sheet.  Ordinary  paper  may 
be  used  with  stamps  affixed.  Registration  not  essential  but  desir- 
able. Previous  registration  is  necessary.  Right  to  trade-mark  is 
vested  in  individual  first  using  it.  No  legal  proceedings  can  be 
instituted  prior  to  registration  of  trade-mark  in  case  infringement 
attempted.     Peso=$0.363. 

Santo  Domingo. — Office  of  registration. — Ministerio  de  Fomento 
y  Obras  Publicas.     Santo  Domingo. 

Duration. — Ten  to  twenty  years ;  renewable. 

Fees. — Registration  for  10  years,  5  dollars;  15  years,  10  dollars; 
20  years,  15  dollars;  renewal,  same.  Registration  desirable  but  not 
essential.  It  is  necessary  to  have  been  previously  registered.  Right 
to  trade-mark  is  vested  in  individual  first  using  it. 

Uruguay. — Office  of  registration. — "Ministerio  de  Indusj;rias,  Tr^- 


296  EXPORTING  TO  LATIN  AMERICA 

bajo,  e  Instruccion  Publica ;  Oficina  de  Marcas  de  Fabrica,  Monte- 
video. 

Duration. — Ten  years;  renewable. 

Fees. — Registration,  10  pesos;  renewal,  25  pesos;  extra  cer- 
tificates, 2  pesos.  Registration  is  essential.  Previous  registration 
is  necessary.  Uruguayan  law  vests  right  to  trade-mark  in  individ- 
ual first  applying  for  it.  No  legal  proceedings  can  be  instituted 
prior  to  registration  of  trade-mark  in  case  infringement  is  at- 
tempted.    Peso=$1.034. 

Venezuela. — Office  of  registration. — Ministerio  de  Fomento, 
Ramo  de  Privilegio  o  Patentes  de  Industrias,  Caracas. 

Duration. — Thirty  years;  renewable. 

Fee. — Seal  and  stamp  for  application,  1.50  bolivares;  seal  and 
stamp  for  certificate,  45  bolivares.  Registration  not  essential  but 
desirable.  Necessary  to  have  been  previously  registered.  Right 
to  trade-mark  vested  in  individual  first  using  trade-mark.  Bolivar 
=$0,193. 


CHAPTER  XX 

HELPFUL  FACTORS  IN  THE  DEVELOPMENT  OF  LATIN  AMERICAN 

BUSINESS 

Introduction. — In  the  extension  of  Latin  American  trade  there 
are  many  factors  which  influence  success  or  failure  and  which  must 
be  given  careful  consideration  in  connection  with  all  sales  efforts. 
These  factors  are  of  such  a  varied  character  that  in  a  work  of  this 
kind  only  a  few  can  be  discussed.  Some  of  the  principal  ones  are: 
attention  to  details;  the  recognition  of  the  influence  of  foreign 
residents;  a  study  of  the  needs  of  labels  on  packages  and  con- 
tainers; a  knowledge  of  National  holidays;  the  maintenance  of 
stocks  of  supplies  and  parts  of  machinery,  etc. 

Need  of  Adaptability. — The  keynote  to  the  success  achieved  by 
those  firms  who  have  established  the  most  profitable  business  in 
Latin  America  was  their  adaptability.  Almost  without  exception 
such  houses  have  changed  their  methods  of  marketing  in  accord- 
ance with  the  customs  and  conditions  which  they  have  found  in 
the  different  republics  or  sections  thereof.  They  realized  the  folly 
of  applying  to  the  southern  countries  the  same  selling  plans  as 
those  which  were  used  in  the  United  States.  The  purchasing  power 
of  the  different  classes,  the  peasants  as  well  as  the  well-to-do 
inhabitants,  was  considered,  and  the  selling  campaign  arranged  to 
meet  the  facts. 

Need  for  Competent  Direction. — ISTo  matter  what  selling  plan 
was  adopted,  the  concerns  who  have  firmly  established  their  busi- 
ness have  invariably  placed  in  charge  of  their  department  a  com- 
petent director.  In  the  case  of  the  small  manufacturer  whose 
means  or  volume  of  business  will  not  permit  an  elaborate  foreign 
department,  the  necessity  for  a  full  knowledge  of  the  needs  remains 
the  same.  Generalities  have  no  place  in  the  consideration  of  the 
problems  of  Latin  American  trade,  and  specific  facts  should  be 
obtained  ;  otherwise  the  experiment  nuiy  prove  costly.  The  follow- 
ing paragraphs,  in  which  some  factors  of  importance  in  building 

297' 


298  EXPOETING  TO  LATIX  AMERICA 

export  trade  are  considered,  will  demonstrate  the  necessity  for 
attention  to  details. 

Nationality  a  Factor. — A  factor  which  is  sometimes  overlooked 
by  the  manufacturer  who  has  not  thoroughly  studied  the  export 
trade  situation  is  the  prejudice  of  the  members  of  one  nationality 
towards  those  of  another.  In  many  communities  there  are 
colonies  of  Chinese,  Japanese,  Syrian,  Arabian,  and  Turkish  mer- 
chants, who  have  established  themselves,  and  by  reason  of  their 
willingness  to  sell  merchandise  at  very  low  profits,  have  gained 
the  ill  will  of  merchants  of  other  nationalities.  While  in  many 
instances  merchants  of  the  aforementioned  countries  are  in  a  very 
strong  financial  position,  the  manufacturer  who  is  seeking  to  estab- 
lish a  business  in  any  of  the  communities  where  they  are  engaged 
may  find  it  to  his  decided  disadvantage  to  place  his  wares  in  their 
shops,  because  of  the  prejudice  against  him  which  such  action  may 
arouse. 

The  Need  of  Local  Eepresentation. — In  the  introduction  of 
many  products  or  manufactures,  local  representation  is  almost  in- 
dispensable. This  is  particularly  true  in  the  case  of  machinery  or 
implements  requiring  overlooking  or  technical  installation.  The 
expert  in  charge  should  be  thoroughly  practical  and  should  be  able 
to  correct  errors  and  to  make  demonstrations  of  uses  and  processes. 
Such  an  individual  should  be  supplied  with  a  stock  of  spare  parts 
to  replace  those  that  may  be  lost,  damaged,  or  worn  out. 

Maintaining  Stocks  of  Parts. — The  necessity  for  such  a  depot 
will  be  readily  apparent.  It  is  not  reasonable  to  expect  that  the 
purchaser  of  a  large  piece  of  agricultural  machinery,  who  is  located 
far  in  the  interior,  would  be  willing  to  wait  until  a  part  that  breaks 
is  obtained  from  the  United  States.  One  of  the  best  and  most 
effective  arguments  that  could  be  advanced  by  the  manufacturer 
who  produces  machinery,  when  offering  his  product  to  Latin 
Americans,  would  be  his  ability  to  supply  parts  from  a  centrally 
located  depot,  to  minimize  loss  of  time. 

Numbering  Machinery  Parts. — The  manufacturers  of  agricul- 
tural machinery,  agricultural  engines,  electric  light  plants,  sugar 
mills,  etc.,  should  number  every  part.  This  applies  not  only  to  the 
actual  machine  but  to  the  illustrations  thereof  in  catalogs.  The 
reasons  are  self-evident.  The  purchasers  of  maeliinery  frequently 
find  it  necessary  to  replace  broken  or  worn  parts,  and  desire  t<) 


HELPFUL  FACTOES  IN  BUSINESS  DEVELOPMENT     299 

supply  such  necessities  witli  the  least  possible  delay.  To  do  so 
requires  cabling,  if  no  stock  is  carried  in  Latin  America,  and  the 
expense  thereof  can  be  minimized  if  it  is  possible  to  telegraph  in  a 
code  with  numbers. 

The  Finish  of  Machinery. — Because  of  foreign  competition,  par- 
ticularly that  of  French  makers,  who  are  accustomed  to  finish  their 
manufactures  in  a  very  attractive  manner,  it  is  essential  that  the 
American  manufacturer  make  his  machinery  as  presentable  as 
possible.  While  finish  may  not  add  to  the  strength  or  efficiency 
of  a  plant,  it  makes  a  very  strong  appeal  to  the  esthetic  sense  and 
the  importers  are  desirous  of  having  the  machinery  reach  them 
in  attractive  condition.  Where  machines  have  to  be  resold,  this 
is  even  more  important,  as  the  scarring  caused  by  transportation 
and  handling  is  decidedly  to  the  disadvantage  of  the  buyer. 

The  Importance  of  Attractive  Labels. — Not  only  the  intellectual 
life  of  the  Latin  American  nations  has  been  greatly  influenced  by 
the  French,  but  many  of  the  articles  in  most  common  use,  particu- 
larly by  the  women,  bear  unmistakable  evidence  of  French  influ- 
ence. This  is  especially  true  of  labels,  packages,  containers,  etc. 
The  Latin  American  is  quick  to  grasp  the  selling  value  of  an 
article  that  is  attractively  presented,  and  for  that  reason  the 
American  manufacturer  should  study  the  tastes  of  the  ultimate 
consumer,  and  seek  in  every  way  possible  to  gratify  them.  In 
making  an  analysis  of  this  important  factor,  it  is  indispensable 
that  the  tariff  of  the  respective  countries  be  taken  into  consideration 
in  order  that  the  sale  of  an  article  may  not  be  adversely  affected 
by  excessive  import  duties  on  the  package  or  on  the  article  itself. 

Providing  for  Climatic  Conditions. — The  effect  of  climate  is  so 
marked  that  it  must  be  carefully  considered.  In  the  sale  of  certain 
articles — for  instance  lightweight  garments — it  is  essential  that  no 
metal  be  used,  inasmuch  as  the  tropical  climate,  particularly  the 
salt  breeze,  quickly  corrodes  metal,  and  garments  on  which  such 
material  appears  are  easily  damaged.  This  applies  especially  to 
trousers,  belts,  suspenders,  and  similar  articles.  Another  example 
is  that  of  enameled  ware  shipped  to  the  tropics.  Ordinary  enamel- 
ing will  not  do  and  although  an  increase  in  the  thickness  thereof 
may  add  to  the  cost  of  manufacture,  this  will  be  compensated  by 
the  increase  in  business.  Before  shipping  enameled  paper,  labels, 
etc.,  to  a  warm  climate,  it  should  be  ascertained  if  mucilage,  glue. 


300  EXPORTING  TO  LATIN  AMERICA 

or  other  adhesive  substances  may  not  be  omitted,  as  articles  are 
frequently  rendered  iinsalalile  when  this  is  not  done. 

Meeting  Requirements  for  Special  Sizes. — Notwithstanding  the 
fact  that  arguments  regarding  higher  prices  may  frequently  be 
answered,  there  are  times  when  it  seems  highly  desirable  to  make 
some  change  in  manufacture  in  order  that  an  article  may  find  a 
more  ready  sale.  This  is  particularly  true  in  the  case  of  products 
which  must  be  packed  in  a  certain  manner  to  meet  the  require- 
ments of  the  trade.  As  a  specific  instance  may  be  cited  the  case 
of  an  importer  of  canned  food  products.  It  was  found  that  because 
of  the  small  wages  paid  the  laborers  a  package  ordinarily  retailed 
in  the  United  States  at  twenty-five  cents  was  too  expensive,  yet  the 
article  itself  was  appreciated  and  could  be  sold.  By  arranging  to 
pack  this  product  in  cans  that  could  be  retailed  at  five,  ten,  and 
fifteen  cents,  a  large  business  resulted. 

Supplying  Requirements  of  Dealers. — A  concrete  example  of  the 
necessity  for  observing  the  wishes  of  dealers  is  afforded  in  the  cotton 
goods  trade.  Cotton  goods  in  the  United  States  are  generally 
quoted  in  bolts  of  twenty  yards  whereas  the  Latin  American  pre- 
fers bolts  of  forty  meters  or  thirty-one  feet.  In  other  instances, 
American  textile  manufacturers  reject  small  orders  and  will  ship 
only  bolts  of  50  or  60  yards,  while  European  houses  supply  smaller 
lots  which  are  suitable  for  the  markets  in  bolts  of  20  and  30 
yards. 

Requests  for  Special  Wrapping  and  Packing. — A  strict  compli- 
ance with  requests  for  special  labels  or  wrapping  is  indispensable, 
as  these  are  based  on  conditions  of  which  the  American  manufac- 
turer has  no  knowledge.  An  instance  may  be  cited  of  a  Central 
American  importer  who  had  for  many  years  imported  candles 
which  were  wrapped  in  blue  paper.  When  a  shipment  came 
wrapped  in  yellow  paper  his  customers  would  not  buy  them  until 
he  could  exchange  the  yellow  Avrapping  for  blue. 

The  Importance  of  Attractiveness. — In  the  case  of  tinned  prod- 
ucts, American  brands  are  much  preferred  because  of  quality  and 
general  merit,  yet  they  do  not  sell  so  well  as  those  of  other  foreign 
countries  nor  at  so  high  a  price,  because  they  lack  attractiveness 
in  packing.  It  is  highly  essential  that  all  ])ackages,  including  the 
labels,  be  made  the  most  attractive  possible  in  order  to  win  the 
attention  of  the  prospective  buyer.     In  the  case  of  certain  manu- 


HELPFUL  FACTORS  IN  BUSINESS  DEVELOPMENT     301 

factures,  notably  chemicals  or  drugs,  it  is  essential  to  follow  the 
rules  of  individual  republics  regarding  the  labeling,  seal,  composi- 
tion, etc.  Before  attempting  to  do  business  in  a  country,  the  re- 
quirements in  this  respect  should  be  ascertained  and  all  prepara- 
tions should  be  made  to  satisfy  them.  As  a  concrete  instance  may 
be  cited  the  regulations  for  pharmacies  as  •  applicable  to  patent 
and  other  medicines  in  the  republic  of  Venezuela.  Such  regula- 
tions are  not  onerous,  but  they  vary,  and  the  success  achieved  by 
numerous  houses  which  have  established  a  business  in  Latin  Amer- 
ica demonstrates  that  it  is  possible  to  comply  and  yet  do  business 
profitably. 

Necessity  for  Demonstration. — Many  manufactured  articles 
could  be  successfully  introduced  in  Latin  America  if  the  proper 
method  were  followed.  This  is  often  merely  a  case  of  demonstra- 
tion. The  Latin  American,  once  convinced,  is  a  ready  buyer,  but 
the  advantages  of  an  article  must  be  proved  to  him.  Labor-saving 
machinery,  appliances,  etc.,  can  be  sold  if  this  method  is  followed. 
As  an  example  of  the  possibilities  of  the  Latin  American  fields 
may  be  cited  the  instance  of  the  Sociedad  de  Electricidad  de  Ro- 
sario  (the  Light  and  Power  Plant  of  Rosairo,  Argentina).  This 
organization  rented  a  large  store  in  one  of  the  principal  business 
streets  of  that  city  and  installed  an  exhibition  of  the  very  latest 
electric  appliances,  many  of  which  had  never  before  been  used,  and 
by  demonstration  created  a  demand  for  them.  A  sale  for  many 
other  articles  may  be  created  in  like  manner. 

The  Need  for  Standardizing. — In  the  development  of  foreign 
trade,  the  necessity  for  standardizing  is  daily  becoming  more  im- 
portant. The  efforts  of  trade  organizations  and  government  offi- 
cials should  be  directed  towards  fixing  and  maintaining  standards 
of  all  products  which  are  capable  of  being  standardized.  In  in- 
numerable instances  the  failure  of  the  American  manufacturer  to 
please  the  Latin  American  buyer  may  be  attributed  to  the  lack  of 
standardization.  This  resulted  from  the  fact  that  Latin  American 
merchants  ordered  articles  of  a  certain  class,  only  to  be  greatly 
disappointed  by  the  receipt  of  a  shipment  of  entirely  different 
character. 

The  Importance  of  Holidays. — The  ])ari  that  holidays  play  in 
Ihe  life  of  the  Latin  American  people  is  far  greater  thnn  in  the 
U]iitcd  States,    Not  alone  National  but  State  and  Church  holidays! 


303  EXPOETIXCt  TO  LATIX  AMEEICA 

are  universally  celebrated  and  the  observance  of  Saints'  days,  birth- 
days, and  other  anniversaries  is  very  common.  So  serious  has  the 
problem  of  holidays  become  in  many  of  the  countries  that  strong 
efforts  are  being  made  by  the  business  interests  to  restrict  the 
number  and  character  of  the  celebrations. 

How  to  Use  Holidays. — Holidays  may  be  turned  to  good  account 
in  correspondence  and  in  the  preparation  of  advertising  matter. 
This  may  be  done  by  using  them  as  a  pretext  for  letters  and 
traveling  representatives  may  take  advantage  thereof  for  the  pur- 
pose of  sending  cards  and  greetings,  which  are  always  appreciated 
by  the  Latin  Americans.  The  exchange  of  greetings  at  New  Year's 
is  very  common,  while  the  celebration  of  Christmas  also  affords 
an  opportunity  for  messages  of  good  will.  Advertising  matter  may 
be  prepared  with  JSTational  holidays  as  the  motive,  and  letters  can 
often  be  made  more  intimate  by  expressions  regarding  such  occa- 
sions. The  lists  of  the  holidays  of  the  Latin  American  republics 
are  obtainable  from  the  Consulates  General  of  the  republics,  in. 
New  York  City.  The  more  important  National  celebrations  are 
outlined  on  page  303. 

The  Principal  National  Holidays  in  Latin  America, — The  im- 
portance of  recognizing  the  effect  of  holidays  on  Latin  American 
trade  has  already  been  referred  to.  The  celebrations  commemorate 
various  events.  In  some  of  the  republics  it  is  the  custom  to  cele- 
brate the  day  of  the  country's  Patron  Saint.  In  addition  the  reli- 
gious holidays  of  the  Catholics  are  widely  observed,  notably.  Holy 
Thursday,  Good  Friday,  Easter,  All  Saints'  Day,  Christmas,  and 
Corpus  Christi,  and  on  these  days  business  is  completely  sus- 
pended. In  almost  all  of  the  republics  are  celebrated  the  birth- 
days of  the  patriots  who  are  held  in  especial  reverence  and  honor. 
Other  purely  local  anniversaries  are  also  celebrated,  but  there  are 
certain  National  holidays  which  are  of  transcendent  importance. 
The  latter  have  been  briefly  outlined  below: 

Argentina. — May  25.  To  commemorate  the  date  on  which  the 
Spanish  Viceroy,  Cisneros,  was  deposed,  1810. 

July  9.  To  celebrate  the  Declaration  of  Independence  from 
Spain,  lcS16. 

Bolivia. — August  6.  To  commemorate  tlie  Battle  of  Junin, 
1824,  and  the  adoption  of  the  National  Declaration  of  In- 
dependence, 


HELPFUL  FACTORS  IN  BUSINESS  DEVELOPMEXT     303 

Brazil. — January  1.  New  Year's  Day.  A  general  celebration  of 
the  new  year. 

February  24.    To  commemorate  the  vote  on  the  constitution. 

April  21.    Celebration  in  memory  of  the  leader  of  the  republic. 

May  3.    Celebration  of  the  discovery  of  Brazil. 

May  13.     Festival  to  commemorate  the  freeing  of  the  slaves. 

July  14.  Jubilee  celebration  of  the  republic,  commemorating 
the  independence  and  liberation  of  the  American  people. 

September  7.  To  commemorate  the  Declaration  of  Independ- 
ence from  Portugal,  1822. 

November  2.    All  Souls'  Day. 

November  15.  To  commemorate  the  change  from  constitutional 
empire  to  a  republic,  1889. 

Chile. — September  18.  To  commemorate  the  date  when  the 
Spanish  Captain  General  was  deposed,  1810. 

Colombia. — July  20.  To  commemorate  the  inauguration  of  the 
struggle  for  independence. 

August  7.  Celebration  of  the  anniversary  of  the  Battle  of 
Boyaca. 

October  28.     Celebration  of  the  birthday  of  Simon  Bolivar. 

Cuba. — February  24.  To  celebrate  the  date  of  Cuban  inde- 
pendence. 

Costa  Rica. — September  15.  To  commemorate  the  independence 
of  the  republic. 

May  1.     Commemoration  of  the  repulse  of  the  Filibusters. 

October  12.     To  celebrate  the  discovery  of  America. 

Dominican  Republic. — February  17.    National  celebration. 

August  IG.    National  holiday. 

Ecuador. — August  10.  To  celebrate  the  Proclamation  of  Inde- 
pendence. 

October  9.     Commemoration  of  the  Independence  of  Guayaquil. 

Guatemala. — March  15.  To  commemorate  the  accession  of  the 
President. 

June  30.  Celebration  of  the  anniversary  of  the  triumph  of  the 
Liberal  Eevolution,   1871. 

September  15.    Independence  Day  of  Central  America. 

Haiti. — January  1.  To  commemorate  the  culmination  of  the 
efforts  of  the  islanders  for  their  liberty. 

May  1.    The  day  of  agriculture.     To  commemorate  the  admin- 


304  EXPORTING  TO  LATIN  AMERICA 

istration  of  Toussaint  L'Ouverture,  who  induced  the  natives  to 
adopt  a  farming  life  in  preference  to  that  of  the  sword. 

Honduras. — Septemher  15.  To  commemorate  the  Declaration 
of  Independence  of  Central  America. 

Mexico. — May  5.  To  commemorate  the  victory  of  the  Mexican 
forces  led  by  General  Porfirio  Diaz  and  General  Ignacio  Zaragoza 
over  the  French  at  Puebla. 

September  15.  To  commemorate  the  beginning  of  the  struggle 
for  freedom  and  the  Declaration  of  Independence. 

February  5.  Celebration  of  the  anniversary  of  the  publication 
of  the  constitution. 

Nicaragua. — September  15.  To  commemorate  Independence 
Day.     The  Declaration  of  Independence  of  Central  America. 

June  1.  To  commemorate  the  beginning  of  the  Civil  War, 
1893. 

Paraguay. — February  3.  San  Bias  Day.  I'o  commemorate  the 
miraculous  rescue  of  the  Spanish  at  Corpus  Christi  from  In- 
dians. 

May  14.     To  commemorate  the  independence  from  Spain,  1811. 

November  25.  To  commemorate  the  adoption  of  the  constitu- 
tion, 1870. 

Peru. — July  28.  To  commemorate  the  Proclamation  of  Inde- 
pendence, 1821. 

Salvador. — November  5.  To  commemorate  the  first  attempt  for 
independence,  1811. 

September  15.  To  commemorate  the  independence  of  Central 
America,  1821. 

May  3.     Arbor  Day. 

April  29.  To  commemorate  the  Revolution  of  Gutierrez,  1874. 

February  3.  Festival  in  commemoration  of  the  Battle  of  Monte 
Caseros. 

Uruguay. — May  25.  Liberation  Day.  To  commemorate  the 
deposition  of  the  Spanish  Viceroy,  1810. 

May  18.    To  commemorate  the  Battle  of  Las  Piedras,  1811. 

April  18-19-20.  To  commemorate  the  Crusade  of  the  Thirty- 
Three.  Celebrated  once  every  four  years,  beginning  in  1864. 
The  principal  celebration  is  held  on  the  nineteenth. 

July  18.  To  commemorate  the  adoption  of  the  constitution, 
1830. 


HELPFUL  FACTOES  IN  BUSINESS  DEVELOPMEXT     305 

August  25.  To  commemorate  the  Declaration  of  ludependence, 
1825. 

V enezuela. — April  19.  To  commemorate  the  decisive  steps  to- 
wards independence,  1810,  by  the  inauguration  of  a  governing 
board. 

June  24.     To  commemorate  the  Battle  of  Carabobo,  1821. 

July  5.  To  commemorate  the  independence  of  Veneznela,  1811. 

October  28.    To  commemorate  the  Saint's  day  of  Simon  Bolivar. 


CHAPTER  XXI 

THE  PAN-AMERICAN  CANAL.     ITS  EFFECT  ON  LATIN  AMERICAN 
TRADE.      THE   PAN-AMERICAN   RAILWAY 

Introduction. — The  opening  of  the  Pan-American  Canal  in 
1914  marked  the  completion  of  the  greatest  engineering  achieve- 
ment in  the  history  of  the  world.  In  the  agitation  for  trade  exten- 
sion during  the  last  decade  more  frequent  reference  has  been  made 
to  the  effect  of  this  waterway  than  to  any  other  single  feature. 
The  European  War  served  to  increase  the  interest  not  only  in  the 
Canal,  but  also  in  the  trade  possibilities  as  a  direct  result  of  its 
construction.  The  influence  of  the  Canal  has  thus  been  both  direct 
or  material,  and  indirect  or  psychological. 

Psychological  Effect. — The  indirect  or  psychological  effect  has 
been  noticeable  both  in  the  United  States  and  in  South  America. 
Its  construction  has  aroused  in  the  United  States  a  greater  interest 
in  Latin  America,  particularly  in  the  South  American  republics. 
This  interest  extended  not  only  to  a  study  of  trade  possibilities, 
but  also  to  the  people,  their  ideals  and  customs,  their  history  and 
literature.  The  discussions  regarding  the  Canal  had  a  very  subtle 
influence  in  awakening  a  desire  in  many  men  of  wealth  to  visit 
the  Canal  during  its  construction,  in  order  that  they  might  be 
prepared  to  take  advantage  of  the  opportunities  which  they  expected 
that  it  would  bring. 

The  Direct  Benefit  of  the  Canal. — One  of  the  direct  or  material 
])enefits  which  has  resulted  from  the  waterway  has  been  a  defi-nite 
effort  made  by  American  manufacturers  to  obtain  a  share  of  Latin 
American  trade,  and  many  manufacturers  who  have  previously 
made  no  effort  in  this  direction  are  either  studying  the  situation 
or  sending  representatives  for  the  purpose  of  soliciting  orders. 
The  establishment  of  American  banks  has  already  begim  and  will 
unquestionably  be  followed  by  a  great  extension  of  banking  facili- 
ties. American  capital  is  being  invested  in  numerous  enterprises 
such  as  mining,  hydro-electric  and  irrigation  projects,  railroads  and 

306 


THE  PAN- AMERICAN  CANAL  307 

plantations.  The  leading  commercial  organizations  of  the  United 
States  are  all  seeking  the  best  means  of  aiding  their  members  in 
Latin  American  trade  extension,  and  numerons  manufacturers  are 
employing  foreign  correspondents  and  creating  export  departments. 
Tn  South  America  the  material  benefits  of  the  Canal  are  not  yet  so 
marked,  but  some  are  already  noticeable.  The  actual  benefits  of 
the  waterway  will  be  largely  confined  to  the  six  republics  in  Central 
America :  Panama,  Costa  Rica,  Nicaragua,  Honduras,  Salvador, 
Guatemala;  and  the  repuljlics  on  the  west  coast  of  South  America: 
Colombia,  Ecuador,  Peru,  Bolivia,  and  Chile.  These  countries  will 
be  particularly  benefited  by  tlio  reduction  of  time  in  steamship 
transportation,  but  in  this  respect  European  lines  will  be  on  an 
equality  with  American  vessels.  The  operation  of  light  draft  barges 
from  Panama  to  neighboring  ports  will  unquestionably  follow  as 
a  direct  result  of  the  need  for  more  rapid  transportation  of  certain 
products,  since  the  cities  of  Colon  and  Balboa  (Panama)  promise 
eventually  to  become  the  greatest  transshipping  ports  in  the  world. 
The  barges  will  make  it  possible  to  develop  trading  points  where 
today  there  are  no  suitable  harbors  because  of  the  insufficient 
depth  of  water. 

Trade  Possibilities. — The  possibilities  of  trade  development  can 
be  realized  when  one  considers  that  within  very  easy  water  com- 
munication of  Colon  and  Balboa  there  are  15,000,000  people  with 
a  commerce  of  $150,000,000  annually.  Of  this  vast  total  $85,- 
000,000  represents  exports,  and  $05,000,000  imports.  This  busi- 
ness, already  large,  will  unquestionably  show  a  great  increase  in  the 
next  decade  and  naturally  the  per  capita  buying  power,  which  is 
today  very  low,  will  also  increase. 

The  Conditions  in  General. — The  conditions  in  general  on  the 
West  Coast,  geographically  speaking,  are  much  inferior  to  those  on 
the  east  coast.  The  chief  cause  for  this  is  the  Andes  Mountains, 
which  occupy  a  large  stretch  of  territory.  The  strip  between 
these  mountains  and  the  Pacific  Ocean  is,  on  the  whole,  very 
narrow,  and  as  a  result  the  direct  benefits  of  the  Canal  will  never 
be  as  great  as  would  be  the  case  were  the  conditions  on  the  east 
and  west  coasts  of  South  America  reversed.  The  agricultural  possi- 
bilities of  the  west  coast  republics  are  far  inferior  to  those  of 
eastern  South  America.  They  are,  however,  very  rich  in  certain 
resources,  notably  the  nitrates  of  Chile,  the  tin  of  Bolivia,  the 


308  EXPOETIXCt  TO  LATIN  AMEEICA 

copper  of  Pern,  and  the  oil  of  Peru,  Ecnador,  and  Colombia.  Ex- 
ploitation of  the  latter  resources  has  just  begun,  but  already  the 
development  of  the  mineral  wealth  before  mentioned  has  been  great. 

Capital  Causes  Development. — Economists  are  a  unit  in  the 
opinion  that  the  investment  of  American  capital  will  result  in  a 
great  development  of  the  republics  on  the  west  coast,  even  though 
all  that  has  been  hoped  for  may  not  be  realized.  The  direct  effect 
of  these  investments  will  be  reflected  in  railway  construction,  which 
will  necessitate  machinery,  hardware,  tools,  steel,  material  for  con- 
struction purposes — particularly  steel  and  iron — for  railways, 
bridges  and  buildings  in  general.  Machinery  of  every  sort  will 
be  required,  particularly  for  mining  and  the  extraction  of  metals. 
The  use  of  small  machinery,  hardware,  tools  and  implements  will 
likewise  increase.  These  will  be  used  for  the  development  of  other 
resources,  such  as  mines,  plantations,  hydro-electric  plants  and  the 
like,  for  which  American  machinery  and  implements  will  be  pre- 
ferred. All  these  will  be  transported  at  a  lower  rate  than  was  the 
case  before  the  construction  of  the  Canal;  and  the  output  of  the 
mines,  the  forests  and  the  soil  of  these  countries  will  likewise  be 
carried  at  a  lower  cost,  which  will  also  benefit  the  producers. 

The  Indirect  Effect  of  American  Investments. — The  investments 
of  American  capital  will  naturally  make  for  the  growth  of  Ameri- 
can trade  with  the  Latin  American  republics  at  the  expense  of 
European  exporters.  However,  as  the  republics  are  comparatively 
undeveloped  considering  their  great  natural  resources,  it  is  not 
reasonable  to  expect  that  trade  with  these  countries  will  grow  in. 
the  same  proportion  as  has  the  business  with  the  republics  of  eastern 
South  America.  One  of  the  great  possibilities  for  the  future  is 
the  increased  earning  power  of  the  natives  which  will  result  from 
the  greater  demand  for  labor.  The  per  capita  buying  power  of 
the  countries  on  the  west  coast  in  1930  will  be  much  larger  than 
in  1915.  It  is  because  of  this  possibility  that  the  wise  manufac- 
turer will  seek  to  plan  his  efforts  in  the  most  intelligent  manner 
in  order  to  establish  a  business  on  a  permanent  foundation  that 
it  may  grow  in  prf)pnrtion  to  the  development  of  these  countries. 

The  Pan-American  Railway. — One  of  the  projects  of  interest  to 
Latin  America;is  is  the  construction  of  the  Pan-American  Railway. 
It  was  launched  by  Hon.  Jas.  G.  Blaine,  who  recognized  its  enor- 
mo\is  possibilities  and  who  had  for  advisers  in  the  matter  a  number 


THE  PAN-AMERICAN  CANAL  309 

of  prominent  railroad  men.  The  Pan-American  Railway,  when 
finished,  will  have  a  length  of  about  10,000  miles  and  will  be  an 
intercontinental  railway  route  to  connect  New  York  with  the 
southernmost  point  in  Chile  or  Argentina.  The  number  of  miles 
already  constructed  which  can  be  utilized  in  the  development  of 
the  system  approximates  6,500,  leaving  for  construction  about  3,500 
miles.  Until  the  outbreak  of  the  Mexican  Revolution  it  was  possible 
to  make  a  journey  by  rail  from  New  York  to  the  northern 
boundary  of  Guatemala,  and  additional  links  are  already  in  course 
of  construction  in  many  of  the  countries. 

Cooperation  of  the  Governments. — The  various  Latin  American 
republics  have  taken  a  deep  interest  in  the  project  which  has  been 
the  subject  of  discussion  at  the  various  Pan-American  Conferences. 
Its  influence  upon  the  development  of  the  United  States  commerce 
with  Latin  America  cannot  be  exaggerated.  A'ast  territories  will 
be  opened  to  settlement  and  the  regions  through  which  it  will  pass 
will  be  greatly  benefited.  In  the  construction  of  the  railway,  steel 
rails,  machinery  and  tools  will  be  employed,  while  the  investment 
of  American  capital  in  the  building  of  the  various  branches  will 
influence  the  purchase  of  American  manufactures.  Commercial 
organizations  should  lose  no  opportunity  to  agitate  the  construction 
of  the  lines  already  projected  and  the  completion  of  those  under 
way. 


CHAPTER  XXII 

RAILROAD     AND     STEAMSHIP     FACILITIES.       THE     EFFECT     OF 
STEAMSHIP    RATES    ON    LATIN   AMERICAN   COMMERCE 

Introduction. — One  of  the  topics  most  frequently  touched  upon 
in  discussing  Latin  American  trade  possibilities  is  the  matter  of 
transportation.  It  has  often  been  asserted  that  there  has  been  a 
serious  lack  of  shipping  facilities  for  the  transportation  of  Ameri- 
can products;  that  the  means  of  reaching  Latin  America,  par- 
ticularly South  America,  have  been  inadequate,  and  that  the  foreign 
steamship  lines  upon  which  the  United  States  has  had  to  depend 
for  the  transportation  of  its  products  to  Latin  American  countries 
have  discriminated  against  this  country  in  favor  of  the  European 
exporters.  LTpon  analysis  it  will  be  found  that  business  with  Latin 
America,  which  had  already  reached  a  large  volume,  had  always 
enjoyed  good  facilities  for  carriage.  It  has  also  been  thoroughly 
established  that  the  pioneers  in  Latin  American  trade  have  not 
complained  of  the  lack  of  shipping  facilities ;  they  have  recognized 
that  ocean  transportation  is  largely  a  question  of  supply  and  de- 
mand and  that  if  the  business  Avere  obtained  means  would  always 
be  found  of  transporting  the  goods. 

Foreig^i  Steamship  Lines. — A  large  percentage  of  the  shipments 
to  the  Latin  American  republics  have  been  carried  in  foreign 
bottoms.  A  number  of  investigations  have  been  made  to  determine 
whether  the  charges  for  transportation  favored  Europe,  but  nothing 
has  developed  to  establish  the  claim  that  American  shippers  are 
at  a  serious  disadvantage. 

Steamship  Facilities  to  Latin  America. — Until  the  outbreak  of 
the  European  War,  which  naturally  had  a  demoralizing  effect  upon 
transportation  and  upon  all  other  business,  sailings  to  Latin  Ameri- 
can ports  were  frequent.  It  has  been  possible  to  reach  the  Latin 
American  countries  from  various  ports  on  the  Atlantic  seaboard, 
from  cities  on  the  Gulf  of  Mexico,  and  from  Pacific  Coast 
ports. 

310 


STEAMSHIP  FACILITIES  AND  FREIGHT  RATES     311 

A  rough  outliue  of  the  steamer  service  from  this  country  to  Latin 
America  might  be  made  as  follows: 

1.  From  New  York  to  the  northern  coast  of  South  America, 
including  Colombia  and  Venezuela. 

2.  From  New  York  to  the  east  coast  ports,  including  Amazon 
River  ports,  to  Iquitos,  Peru,  and  to  the  ports  in  Brazil,  Uruguay, 
and  Argentina. 

3.  Sailings  for  west  coast  ports,  either  via  Cape  Horn  or  Colon 
and  Panama,  thence  west  coast  steamers ;  sailings  now  direct. 

4.  From  New  York  for  Cuba,  Santo  Domingo,  Haiti,  etc. 

5.  From  New  Orleans  for  points  in  Central  America,  Mexico, 
and  north  coast  South  American  points. 

6.  From  New  Orleans  for  west  coast  points  via  Colon  and  Pan- 
ama. 

7.  From  miscellaneous  Gulf  ports,  including  Mobile,  Pensacola, 
etc.,  for  Cuba,  the  West  Indies,  Central  and  South  America. 

8.  From  San  Francisco  for  west  coast  ports  of  Mexico,  Central 
and  South  America. 

Steamship  Lines  to  Latin  America. — In  order  that  the  reader 
may  realize  the  extent  of  the  service  to  Latin  America  there  is 
given  on  page  516  of  the  Appendix  a  list  of  the  steamship  lines 
plying  to  South  American  ports.  There  are,  of  course,  many  other 
lines  to  Cuba,  Central  America,  Mexico,  etc. 

A  Comparison  of  Freight  Rates. — While  there  are  certain  lines 
of  manufacturing  which  are  affected  by  the  ocean  freight  rates, 
the  carriage  of  numerous  products  shipped  to  Latin  America  is 
almost  negligible.  In  many  instances,  it  has  been  shown  that  the 
rates  of  transporting  freight  from  the  United  States  to  Latin 
American  countries  favor  American  manufacturers.  As  examples 
of  some  rates,  the  following  may  be  quoted :  from  New  York  to 
Brazil,  a  distance  of  four  thousand  miles,  15c.  per  100  pounds  and 
upward;  New  York  to  River  Plata,  about  six  thousand  miles,  16  to 
20c. ;  to  Valparaiso,  Chile,  a  distance  of  about  eight  thousand  miles, 
20c.;  Callao,  Peru,  about  ten  thousand  miles,  25c.  These  rates  arq 
extremely  low  and  are  such  that  they  can  compete  very  easily  with 
those  of  European  lines.  On  manufactures  of  cotton,  the  rates  to 
Latin  America  are  lower  than  those  of  any  nation  in  the  world. 
Some  examples  are  as  follows :  from  New  York  to  Havana,  12c., 
plus  2c.  extra  for  lighterage,  or  a  total  of  14c. ;  from  Liverpool  it 


313  EXPOKTING  TO  LATIN  AMERICA 

is  19  7/1  Oc,  To  Callao,  Peru,  it  is  26c.  against  40i/^c.  from  Liver- 
pool; to  Buenos  Aires  the  rate  is  10c.,  against  24  3/lOc.  from 
Liverpool;  to  La  Guaira,  Venezuela,  the  American  rate  is  15c.  and 
the  English  28  9/lOc. 

The  Effect  of  a  Lighterage  Charge. — One  of  the  items  which 
must  be  considered  in  connection  with  freight  rates  and  in  cal- 
culating c.  i.  f.  prices  is  that  of  lighterage.  While  it  must  be 
taken  into  consideration,  the  American  manufacturer  must  realize 
that  in  competition  with  other  nations  he  is  at  no  disadvantage  by 
reason  of  lighterage  charges,  inasmuch  as  it  is  an  item  which  must 
be  paid  irrespective  of  the  origin  of  the  shipment.  In  many  places 
there  are  excellent  harbors  with  splendid  wharves  where  no  lighter- 
age charge  is  made.  However,  on  the  west  coast  of  South  America 
and  Central  America  there  are  only  a  few  good  harbors;  conse- 
quently, at  most  of  these  ports,  lighterage  charges  are  exacted.  As 
an  example  of  such  a  charge  may  be  cited  the  following,  which  is 
typical:  In  the  republic  of  Chile  merchandise  is  divided  into 
ten  classes.  The  lighterage  charges  run  from  75  centavos  to  20 
Chilean  paper  pesos  per  100  kilos.  This  means  that  a  charge  of 
$1.78  to  $47.40  per  ton  (2240  pounds)  is  made  for  bringing  the 
shipment  from  the  vessel  to  the  custom  house.  It  is  a  curious  fact 
that  on  certain  classes  of  merchandise  the  lighterage  charge  is 
actually  in  excess  of  the  ocean  freight  rate  for  a  haul  of  eight 
or  nine  thousand  miles. 

How  to  Base  Freight  Rates. — One  of  the  valuable  publications 
of  the  Bureau  of  Foreign  and  Domestic  Commerce  is  a  bulletin 
issued  for  the  convenience  of  shippers.  This  pamphlet  contains  a 
series  of  tables  showing  the  freight  rates  to  New  York  City  from 
the  principal  inland  points  in  the  United  States.  Ocean  freight 
rates  are  also  quoted  from  New  York  to  Guayaquil,  Ecuador; 
Callao  and  Mollendo,  Peru;  and  to  Valparaiso,  Chile.  Inland 
freight  rates  from  Guayaquil  to  Quito,  Ecuador;  Callao  to  Lima, 
Peru;  Mollendo  to  La  Paz;  and  from  Valparaiso  to  Santiago  are 
also  given.  The  rates  cover  various  classes  of  merchandise,  both 
in  carload  and  less  than  carload  lots.  Other  valuable  details  are 
the  charges  for  lighterage,  transfer,  etc.,  at  the  port  of  New  York 
and  in  South  American  ports.  The  bulletin  is  listed  among  others 
on  page  495  of  the  Appendix. 

How  to  Obtain  Rate  Information. — Manufacturers  who  desire  to 


STEAMSHIP  FACILITIES  AND  FEEIGHT  EATES     313 

obtain  information  relative  to  rates,  sailings,  etc.,  may  do  so  as 
follows : 

1.  From  railroad  agents  (foreign  commercial  agents,  particu- 
larly). 

2.  From  steamship  lines  at  ports  of  sailing  (listed  on  page  516). 

3.  Forwarding  freight  agents  (listed  on  page  515). 

4.  Commercial  organizations  of  which  they  are  members. 

It  is  highly  advisable  to  obtain  all  the  data  possible  from  as 
many  sources  as  convenient,  in  order  to  ascertain  not  only  the  lowest 
freight  rates,  but  the  correct  forwarding.  This  includes  the  con- 
signment of  the  merchandise  to  the  correct  pier  in  New  York  City, 
the  most  direct  steamship  line,  the  most  convenient  and  direct  port 
in  Latin  America  where  the  best  and  quickest  facilities  for  im- 
portation and  carriage  into  the  interior  can  be  assured. 

A  Useful  Publication  Concerning  Railroads. — The  student  of 
railroad  conditions  in  Latin  America  will  find  valuable  aid  in  a 
book  which  is  listed  on  page  464  of  the  Appendix. 


CHAPTER  XXIII 
GOVEimMENTAL    ASSISTANCE    TO    AMERICAN    EXPORTERS 

Introduction. — It  is  generally  recognized  that  a  successful  busi- 
ness with  Latin  America  depends  upon  the  individual  efforts  of  the 
business  man.  The  measure  of  success  achieved  is  in  direct  ratio 
to  the  care  with  which  markets  are  studied,  the  persistence  with 
which  the  business  is  pursued,  and  the  satisfaction  rendered  to 
dealers.  However,  the  alert  manufacturer  who  is  sincere  and  con- 
scientious in  his  efforts  to  build  his  business  on  the  right  basis  can 
find  much  practical  assistance  in  the  service  of  the  United  States 
Government  for  the  development  of  export  trade.  The  services 
available  are  of  such  a  nature  that  a  vast  amount  of  time  and  a 
considerable  expenditure  of  money  and  effort  can  be  avoided  if 
the  work  already  done  by  the  scientific  observers  of  the  govern- 
ment is  utilized  in  planning  efforts  to  obtain  Latin  American  busi- 
ness. This  work,  which  is  under  the  direction  of  the  Chief  of  the 
Bureau  of  Foreign  and  Domestic  Commerce,  Department  of  Com- 
merce, may  be  likened  to  the  assistance  rendered  the  farmer  by  the 
Department  of  Agriculture.  While  the  appropriation  for  the  work 
of  the  Bureau  of  Foreign  and  Domestic  Commerce  is  still  extremely 
limited  in  proportion  to  its  importance  to  the  business  interests  of 
the  country,  it  is  reasonable  to  believe  that  the  sums  appropriated 
will  increase  from  year  to  year. 

Governmental  Service  in  General. — Commerce  with  Latin  Amer- 
ica is  promoted  by  the  Di]il()niatic  and  Consular  Service.  Follow- 
ing the  custom  of  specializing,  there  is  today  in  the  Department  of 
Commerce  a  thoroughly  organized  Bureau  of  Trade  Relations,  one 
of  the  chief  divisions  of  which  is  that  of  Latin  America.  The  im- 
portance of  the  Diplomatic  branch  is  great,  as  it  consummates  com- 
mercial arrangements  which  can  be  made  only  through  the  Foreign 
Offices  of  the  republics.  This  is  a  fact  not  generally  recognized  and 
one  that  should  be  remembered  by  all  interested  in  the  promotion 
of  greater  business  with  Latin  America.    The  other  branch  of  the 

314 


GOVEENMENTAL  ASSISTANCE '  315 

Service  is  the  Consular,  and  the  value  of  the  latter  in  the  develop- 
ment of  trade  with  foreign  countries  is  widely  recognized  for  the 
reason  that  it  has  a  more  direct  bearing  on  practical  results. 

How  the  Bureau  Assists  Manufacturers. — The  Bureau  of  For- 
eign and  Domestic  Conunerce  serves  manufacturers  in  a  practical 
way  by  issuing  reports  on  trade  conditions  and  business  oppor- 
tunities throughout  the  world.  These  are  compiled  by  its  agents, 
who  are  the  following : 

1.  The  consuls.  These  are  under  the  direct  control  of  the  De- 
partment of  State  to  which  the  consuls  report,  but  all  their  efforts 
in  a  commercial  way  are  directed  by  the  Bureau  of  Foreign  and 
Domestic  Commerce.  The  work  of  the  American  consul  is  fully 
outlined  in  Chapter  XXIV. 

2.  The  commercial  attaches.  These  are  under  the  direction  of 
the  Bureau  of  Foreign  and  Domestic  Commerce.  They  serve  the 
commercial  interests  of  the  United  States  in  general  and  report 
on  specific  trade  opportunities,  make  complete  reports  on  the  gen- 
eral outlook  for  business,  and  give  all  advice  possible  to  enable 
American  manufacturers  and  merchants  to  compete  successfully 
with  foreign  nations.  Up  to  the  present  time  there  have  been 
four  appointments  of  commercial  attaches  to  Latin  America; 
namely,  to  Argentina,  Peru,  Chile,  and  Brazil.  With  the  growth 
of  Latin  American  trade  will  doubtless  come  the  appointment  of 
other  attaches  to  most  of  the  remaining  republics. 

3.  The  commercial  and  special  agents  of  the  Department  of 
Commerce.  These  are  attached  to  the  Bureau  and  work  under 
its  direction  with  no  definite  assignment  to  any  one  post.  They  are 
men  selected,  because  of  their  general  export  knowledge,  to  study 
the  possibility  for  the  sale  of  various  articles  in  different  countries. 
The  reports  of  the  commercial  agents  are  gradually  increasing  in 
number  and  within  the  next  few  years  many  important  publica- 
tions will  result  from  their  labors.  A  list  of  the  principal  reports 
already  published  will  be  found  on  page  490. 

Work  of  the  Tariff  Division.— One  of  the  most  important  di- 
visions of  the  Bureau  is  that  devoted  to  the  tariff,  which  compiles 
all  possible  information  regarding  the  tariffs  of  the  countries  of 
the  world.  Particular  attention  is  given  to  the  tariffs  of  the  Latin 
American  republics.  In  the  publications  of  this  division  appear 
the  corrections  and  changes  in  foreign  tariffs,  which  are  extremely 


316  EXPOKTING  TO  LATIN  AMERICA 

numerous.  It  is  possible  for  the  American  manufacturer  who 
desires  information  regarding  the  tariff  in  any  given  country  to 
avail  himself  of  this  Bureau,  which,  if  it  has  not  on  file  the  neces- 
sary data,  is  in  a  position  to  obtain  it  very  quickly.  Its  chief  pub- 
lications are  listed  on  page  490. 

Work  of  the  Statistical  Division. — It  is  only  by  a  careful  study 
of  the  statistics  relating  to  imports  and  exports  that  the  extent 
of  the  foreign  business  of  the  United  States  can  be  appreciated. 
The  division  of  statistics  renders  an  extremely  valuable  service 
in  the  collection  and  publication  of  details  not  only  relating 
to  raw  materials  but  also  to  manufactured  goods  that  enter  and 
leave  the  United  States.  This  division  also  watches  the  imports 
and  exports  of  other  countries,  and  the  study  and  analysis  of  foreign 
trade  conditions  can  be  greatly  aided  by  consulting  any  particular 
item  in  its  publications  relating  to  commerce. 

How  the  Bureau  Collects  and  Distributes  Information. — One  of 
the  most  valuable  services  of  the  Bureau  is  its  collection  and  dis- 
tribution of  information  relating  to  trade  opportunities  abroad. 
This  is  obtained  from  various  sources,  including  the  Diplomatic 
and  Consular  Service,  commercial  attaches,  special  agents,  etc.  It 
consists  of  general  or  specific  facts  regarding  trade.  Many  Ameri- 
can houses  have  been  materially  benefited  by  keeping  in  close  touch 
with  the  publications  of  the  Bureau  through  which  this  informa- 
tion is  disseminated. 

Other  "Work  of  Commercial  Agents. — Governmental  assistance 
in  the  development  of  export  trade  is  being  more  highly  specialized. 
Thus  appointments  of  commercial  agents  for  the  study  of  specific 
branches  of  trade  are  frequently  announced,  and  this  part  of  the 
service  will  become  increasingly  important.  The  duties  of  the  com- 
mercial agents  are  usually  confined  to  the  study  of  trade  oppor- 
tunities for  one,  or  at  most  for  a  few,  industries.  Because  of  this 
fact  more  valuable  reports  can  be  obtained  from  them  than  from 
the  Consuls,  who  are  charged  with  many  other  duties. 

Assignments  of  some  of  the  commercial  agents  recently  ap- 
pointed were  as  follows: 

To  Central  America,  for  a  general  investigation  of  trade  oppor- 
tunities and  openings  for  American  exporters. 

To  the  republic  of  Guatemala,  to  ascertain  the  conditions  sur- 
rounding the  sale  of  clothing,  hats,  etc. 


GOVERNMENTAL  ASSISTANCE  317 

To  South  America  in  general,  to  investigate  the  lumber  trade 
conditions. 

To  the  east  coast  of  South  America,  to  investigate  the  hard- 
ware business. 

To  South  America,  to  investigate  the  opportunities  for:  (a)  elec- 
trical machinery;  (b)  textiles  and  wearing  apparel;  (c)  boots  and 
shoes. 

To  Latin  America  in  general,  to  learn  all  possible  regarding  the 
opportunities  for  furniture. 

To  South  America,  to  study  the  trade  conditions  in  machinery 
and  machine  tools. 

The  Work  of  Commercial  Attaches. — In  addition  to  the  work  of 
special  agents,  the  American  exporters  may  avail  themselves  of  the 
services  of  the  commercial  attaches.  The  commercial  attaches 
are  accredited  by  the  State  Department  to  the  embassies  and 
legations  of  the  United  States  in  Buenos  Aires  (Argentina),  Lima 
(Peru),  Eio  de  Janeiro  (Brazil),  and  Santiago  (Chile).  Their 
purpose  is  the  study  of  the  commerce  and  industries  of  the  coun- 
tries to  which  they  are  assigned,  and  being  charged  with  no  other 
duties  they  are  thus  able  to  obtain  a  broader  outlook  of  the  prob- 
lems of  extending  American  trade  than  can  the  Consuls,  with 
whom  they  collaborate.  Not  being  compelled  to  discharge  the 
routine  duties  which  make  it  necessary  for  the  Consuls  to  main- 
tain regular  office  hours,  they  are  enabled  to  give  the  time  necessary 
to  painstaking  investigation  of  industries  and  commercial  problems 
in  general,  from  the  broadest  standpoint.  When  necessity  arises 
they  are  in  position  to  act  quickly  and  obtain  needed  information 
in  the  shortest  time. 

American  exporters,  by  addressing  the  Department  at  Washing- 
ton, or  upon  application  through  the  branch  offices,  can  obtain 
the  aid  of  these  experts  in  the  solution  of  their  problems. 

Correspondence  with  Commercial  Attaches. — As  in  the  case  of 
American  Consuls,  requests  for  information  should  not  be  made 
direct  to  commercial  attaches.  In  the  first  place,  facts  desired  by 
manufacturers  are  frequently  already  on  file,  and  can  easily  be 
furnished  by  the  Bureau  of  Foreign  and  Domestic  Commerce  in 
Washington  or  tlirough  one  of  its  branch  offices.  Secondly,  the 
commercial  attaches  are  not  supplied  with  special  clerical  assist- 
ance properly  to  answer  the  numerous  inquiries  they  receive.     In 


318  EXPOETING  TO  LATIN  AMERICA 

the  event  that  information  desired  is  not  in  the  files  of  the  Bureau, 
it  is  promptly  obtained. 

The  reports  of  commercial  agents,  when  published,  are  available, 
and  application  may  be  made  to  the  Government  Printing  Office 
for  them.  Many  of  the  findings  of  the  agents  are  chronicled  in 
Commerce  Reports,  and  if  found  of  sufficient  importance,  they  are 
published  separately  under  the  direction  of  the  Bureau  of  Foreign 
and  Domestic  Commerce. 

Other  Practical  Governmental  Aids. — Commercial  agents,  at- 
taches, and  consular  officers  sometimes  obtain  and  forward  with 
their  reports  photographs,  specifications,  samples  of  goods,  etc. 
These  are  naturally  very  useful  in  order  to  study  trade  conditions 
and  opportunities,  and  whenever  application  is  made  for  such  sam- 
ples they  are  loaned  to  responsible  manufacturers,  either  direct  or 
through  branch  offices  of  the  Department  of  Commerce. 

Brancli  Offices  of  the  Bureau. — For  the  purpose  of  increasing 
its  efficiency,  the  Bureau  of  Foreign  and  Domestic  Commerce  has 
established  branch  offices  in  New  York,  Chicago,  St.  Louis,  New 
Orleans,  San  Francisco,  Seattle,  Atlanta,  and  Boston.  (For  ad- 
dresses see  page  547  of  the  Appendix.)  This  step  was  taken  in 
order  that  the  manufacturer  who  wishes  to  extend  his  export  busi- 
ness may  be  more  closely  in  touch  with  the  Bureau,  and  in  order 
to  obviate  the  delays  which  are  inevitable  if  information  is  asked 
by  correspondence.  Each  branch  is  in  charge  of  an  expert  and 
there  are  available  therein  complete  files  of  the  Commerce  Eeports, 
besides  commercial  reports  on  specific  commodities,  samples,  plans, 
specifications,  etc.,  received  by  the  Bureau  from  its  agents  abroad. 
The  manufacturer  who  wishes  to  obtain  information  regarding  the 
sale  of  a  particular  product  may  apply  to  the  special  agent  of 
the  Bureau.  There  is  no  charge  whatever,  and  all  that  is  necessary 
to  avail  oneself  of  this  service  and  to  obtain  cooperation  in  study- 
ing trade  opportunities  is  to  keep  in  touch  with  the  agent. 

Specialized  Information  of  the  Bureau. — One  of  the  most  im- 
portant services  of  tbe  Bureau,  which  is  available  to  every  business 
man,  is  its  cooperation  work,  and  its  dissemination  of  information 
relating  to  specific  commodities  or  business  opportunities  in  dif- 
ferent places.  Through  its  correspondents,  the  consular  agents  and 
commercial  attaches,  the  requirements  of  dealers  are  ascertained. 
Not  infrequently  it  happens  that,  in  order  to  take  advantage  of 


GOVEENMEXTAL  ASSISTANCE  319 

these  opportunities,  quick  notification  of  manufacturers  is  neces- 
sary. Manufacturers  and  exporters  who  have  notified  the  Bureau 
of  their  interest  are  informed  of  the  opportunities  by  special  con- 
fidential bulletins  or  telegrams. 

Contents  of  Commerce  Reports. — The  Bureau  publishes  daily  an 
organ  known  as  Commerce  Reports;  this  is  the  successor  of  a  pub- 
lication which  was  called  the  Daily  Consular  and  Trade  Reports. 
It  contains  the  information  already  referred  to  and  is  extremely 
valuable  in  the  development  of  an  export  trade.  While  Commerce 
Reports  necessarily  contains  information  relating  to  trade  oppor- 
tunities throughout  the  world,  a  considerable  portion  of  it  is  devoted 
to  information  regarding  business  in  Latin  America. 

The  annual  reports  made  by  the  American  Consuls  to  the  Depart- 
ment of  State,  relating  to  conditions  of  trade  in  their  districts,  are 
also  published  annually.  On  account  of  the  interest  being  mani- 
fested, the  reports  are  being  classified  so  that  those  relating  to 
Latin  America  may  be  obtained  separately. 

The  Commerce  Reports  is  sent  free  of  charge  to  newspapers, 
business  organizations  and  trade  journals.  Manufacturers  or  mer- 
chants who  desire  to  subscribe  may  do  so  at  the  rate  of  $3.50  per 
year.  Subscriptions  may  be  sent  to  the  Superintendent  of  Docu- 
ments, Government  Printing  Office. 

The  Distribution  of  Commerce  Reports. — Many  thousands  of 
copies  of  Commerce  Reports  are  distributed  (^aily.  Consular  officers 
frequently  submit  reports,  upon  receipt  of  which  multigraph  copies 
thereof  are  distributed.  The  character  of  the  reports,  sometimes, 
is  of  such  a  nature  that  it  is  deemed  inadvisable  to  print  them,  and 
the  reports  are  then  loaned  in  manuscript,  in  confidence  only,  to 
American  firms.  When  documents  accompanying  reports  are  use- 
ful, they  are  sent  to  interested  concerns.  The  most  modern  means 
are  adopted  to  make  the  information  obtained  in  this  way  available 
to  the  largest  number  of  individuals  in  the  shortest  time. 

American  Trade  Watched  by  Attaches. — As  an  indication  of  the 
care  with  which  American  export  interests  are  being  considered  by 
the  commercial  attaches  may  be  cited  the  request  of  the  Department 
of  Commerce  that  trade  journals  be  sent  to  commercial  attaches 
in  addition  to  the  American  Consuls. 

Cooperation  with  Commercial  Organizations. — The  Department 
of  Commerce,  through  the  Bureau  of  Foreign  and  Domestic  Com- 


320  EXPORTING  TO  LATIN  AMEEICA 

merce,  is  now  cooperating  in  a  very  definite  manner  with  commer- 
cial organizations.  This  consists  in  making  arrangements  with 
commercial  bodies  who  appoint  for  the  purpose  a  person  whose 
functions  correspond  largely  to  those  of  the  branch  agents  of  the 
Bureau, 

This  cooperation  will  make  for  the  utmost  efficiency  inasmuch 
as  the  local  organizations  will  thus  be  able  to  avoid  delays  and 
will  also  be  able  to  furnish  the  information  of  interest  to  manu- 
facturers. 

As  outlined  by  the  Chief  of  the  Bureau,  the  mutual  obligations 
on  the  part  of  the  business  organizations  and  the  Bureau  of  Foreign 
and  Domestic  Commerce  are  as  follows: 


OBLIGATIONS  OF  LOCAL  OKGANIZATIONS 

1.  The  local  organization  shall  establish  a  foreign  trade  bureau. 

2.  This  foreign  trade  bureau  shall  be  under  the  direction  of  the 
governing  board  of  the  organization,  which  shall  be  given  power  on 
behalf  of  the  organization  to  enter  into  such  agreements  as  may  be 
necessary. 

3.  The  executive  direction  of  this  work  shall  be  in  the  hands  of  a 
man  who  shall  devote  his  entire  time  to  it,  and  he  shall  be  provided 
with  such  clerical  assistance  as  may  be  necessary  to  prosecute  his 
work  effectively. 

4.  The  work  which  is  being  carried  on  shall  at  all  times  be  open 
to  the  inspection  of  the  officers  of  the  Department  of  Commerce. 

5.  The  foreign  trade  bureau  shall  render  regular  monthly  reports 
of  a  form  to  be  prescribed  by  the  Burejiu  of  Foreign  and  Domestic 
Commerce. 

6.  The  foreign  trade  bureau  shall  make  at  its  own  expense  a  com- 
plete copy  of  the  "Exporters'  Index"  for  its  section  of  the  country. 
This  index  shall  be  kept  up  to  date  and  additional  data  transmitted 
to  Washington. 

7.  The  foreign  trade  bureau  may  be  called  upon  to  make  reports 
on  specified  subjects.  It  is  understood,  of  course,  that  such  service 
will  not  be  called  for  to  any  considerable  extent. 

8.  The  foreign  trade  bureau  will  be  expected  to  receive  and  en- 
tertain (arrange  conferences  and  meetings  for)  visiting  commercial 
attaches,  commercial  agents,  and  consuls,  on  leave  in  this  country. 

9.  The  service  rendered  by  the  foreign  trade  bureau  will  not  be 


GOVERNMENTAL  ASSISTANCE  321 

restricted  to  the  members  of  the  organization,  but  will  be  freely  given 
to  all  citizens  residing  in  the  territory  of  any  particular  bureau. 


SERVICE  OF  THE  BUREAU 

1.  The  Bureau  of  Foreign  and  Domestic  Commerce  will  place  at 
the  disposal  of  the  man  who  is  delegated  to  do  this  work  every 
facility  of  its  Washington  office  and  its  branch  offices,  for  purpose 
of  study.  This  will  enable  him  to  gain  a  complete  idea  of  the 
facilities  which  the  Bureau  has  to  offer,  and  will  also  put  in  his  hands 
the  tools  with  which  to  work. 

2.  The  Bureau  of  Foreign  and  Domestic  Commerce  will  furnish 
the  local  bureau  with  all  the  information  distributed  by  it.  This 
will  include: 

(a)  The  details  and  addresses  of  "foreign  trade  opportunities." 

(b)  Photostatic  copies  of  plans  and  specifications  which  have  been 
sent  heretofore  only  to  branch  offices  of  the  Bureau. 

(c)  All  confidential  circulars  issued  by  the  Bureau. 

(d)  Telegraphic  trade  opportunities  which  have  been  received  by 
cable. 

3.  Ordinarily  the  information  which  the  Bureau  can  furnish  in 
answer  to  an  inquiry  is  arbitrarily  limited.  This  is  necessary,  not 
only  on  account  of  the  great  volume  of  requests  but  also  because  of 
the  limited  force  of  the  Bureau.  On  account  of  the  large  number 
of  manufacturers  who  would  be  reached  through  the  local  organiza- 
tions, requests  from  them  will  receive  more  detailed  and  unlimited 
attention. 

4.  The  Bureau  of  Foreign  and  Domestic  Commerce  will  furnish 
each  local  organization  with  a  complete,  so  far  as  available,  set  of 
the  publications  of  the  Bureau. 

5.  The  Bureau  will  establish  in  cooperation  with  the  Superintend- 
ent of  Documents  in  each  of  the  local  organizations  a  supply  of  its 
publications  which  are  for  sale  and  which  will  be  a  convenience  to 
local  manufacturers  in  obtaining  the  desired  information. 

6.  All  samples  which  are  received  by  the  Bureau  from  its  agents  in 
the  field  will  be  sent  to  the  local  foreign  trade  bureaus  for  exhibition. 

With  the  plan  in  operation  it  is  possible  for  the  manufacturer 
in  any  particular  district  to  obtain  service  almost  identical  with 
that  of  the  branch  offices  of  the  Department. 

Publications  of  the  Department. — The  Bureau  of  Foreign  and 


322  EXPORTING  TO  LATIN  AMERICA 

Domestic  Commerce  issues  a  number  of  publications  which  are 
invaluable  to  those  who  are  interested  in  Latin  American  com- 
merce.    The  principal  ones  are  as  follows : 

1.  Commerce  Reports. 

(a)  Cable  reports  of  important  trade  information. 

(b)  Consi;lar  reports  dealing  with  conditions  in  particular  lines 
of  business. 

(e)    Reports  from  commercial  attaches. 

(d)  Reports  from  commercial  agents. 

(e)  Summarizations  of  the  latest  statistical  information  on  for- 
eign trade. 

(f)  Important  announcements  of  the  work  of  the  Department  of 
Commerce. 

(g)  List  of  American  Consuls  temporarily  in  the  United  States, 
with  addresses. 

(h)    Foreign  trade  opportunities. 

(i)    Proposals  for  government  supplies. 

2.  Supplements  of  Commerce  Reports.  Annual  reports  of  Ameri- 
can consular  officers  dealing  with  trade  conditions  in  their  districts. 

3.  Special  Agent  Series.  Reports  of  the  commercial  and  special 
agents  of  the  Bureau,  dealing  with  particular  lines  of  business  in 
various  sections  of  the  world. 

4.  Special  Consular  Reports.  Collected  reports  of  American  Con- 
suls, usually  on  some  one  particular  line  of  industry. 

5.  Tariff  Series.  Reports  dealing  with  customs  tariffs,  consular 
regulations  and  trade-mark  laws  of  foreign  countries. 

6.  Statistical  Publications. 

(a)  Monthly  summary  of  commerce. 

(b)  Commerce  and  navigation   (annual). 

(c)  Statistical  abstract  of  the  United  States. 

Methods  of  Distributing  the  Reports. — Any  manufacturer  or 
business  man  who  desires  to  receive  the  publications  of  the  Bureau 
will,  upon  application,  be  placed  on  the  mailing  list  or  Exporters' 
Index  of  the  Bureau,  and  he  is  invited  to  indicate  to  which  coun- 
tries he  wishes  to  export  and  the  articles  he  cares  to  sell.  Any 
information  of  interest  regarding  such  articles  is  communicated  to 
him. 

How  to  Obtain  Publications. — The  Department  of  Commerce 
through  its  division  of  publications  publishes  twice  a  year  a  pam- 


GOVEENMENTAL  ASSISTANCE  323 

phlet  entitled  "List  of  Publications  of  the  Department  of  Com- 
merce available  for  distribution."  This  list  contains  the  titles  of 
all  the  publications,  besides  full  instructions  for  obtaining  them, 
and  condensed  information  concerning  the  scope  of  the  publication 
work  of  the  Department.  In  addition,  there  is  issued  monthly  a 
list  of  publications  becoming  available  during  the  month.  These 
valuable  pamphlets  may  be  received  regularly  by  making  applica- 
tion to  the  Chief,  Division  of  Publications,  Department  of  Com- 
merce, Washington,  D.  C.     No  charge  is  made  for  them. 

The  Bureaus  Directories. — With  the  assistance  of  the  Ameri- 
can Consuls  and  commercial  agents,  there  have  been  published 
several  directories  of  Latin  America.  These  contain  the  names  of 
prospective  or  possible  buyers  of  American  products  in  foreign 
countries,  besides  export  agents,  etc.  They  are  listed  on  page  504 
of  the  Appendix. 


CHAPTER  XXIV 

AMERICAN  CONSULS.     THEIR  SERVICE  TO  EXPORTERS 

Introduction. — The  Consular  Service,  though  under  the  direc- 
tion of  the  Department  of  State,  serves  the  Bureau  of  Foreign 
Commerce  of  the  Department  of  Commerce. 

In  the  upbuilding  of  trade  with  Latin  America  the  American 
Consuls  have  been  exceedingly  important  and  have  rendered  in- 
valuable aid.  Although  the  Consular  Service  was  formerly  sub- 
jected to  considerable  criticism  because  many  of  the  appointments 
were  made  to  discharge  political  debts,  it  has  now  reached  such 
a  high  degree  of  efficiency  that  it  may  be  said  to  compare  very 
favorably  with,  if  not  to  equal,  the  Consular  Service  of  any  for- 
eign country.  The  bill  which  was  passed  by  the  63d  Congress, 
whose  session  ended  in  March,  1915,  placed  the  Consular  Service 
on  a  strictly  merit  basis,  and  the  result  has  been  to  strengthen 
further  this  important  department.  There  is  no  doubt  that  be- 
cause of  this  law  an  increasingly  large  number  of  men  of  recog- 
nized ability  will  seek  appointment  as  Consuls,  and  this  depart- 
ment will  develop  a  more  efficient  personnel  than  it  already 
possesses. 

The  Present  Facilities  of  the  Consuls. — During  the  last  few 
years  there  has  been  a  marked  improvement  in  the  facilities  placed 
at  the  disposal  of  American  Consuls  by  the  United  States  Govern- 
ment, but  there  is  room  for  greater  improvement.  It  is  reasonable 
to  believe,  however,  that  the  aid  extended  by  the  Government  will 
be  materially  increased  in  order  that  Consuls  may  render  still  more 
useful  service  than  in  the  past. 

Outline  of  the  Consular  Service. — The  Consular  Service  in  Latin 
America  consists  of  Consuls  General,  Consuls,  and  Consular  Agents. 
Besides  these  there  is  a  Consul  at  large,  whose  duties  are  those  of 
a  general  supervising  agent  and  inspector  at  large  for  the  De- 
partment. In  each  of  the  republics  there  is  a  Consul  General, 
whose  headquarters  are  in  the  capitol.     Consuls  are  assigned  to 

324 


AMERICAN  CONSULS,  THEIR  SERVICE  325 

the  more  important  places.  In  the  remote  points 'Consular  Agents 
serve  the  government  as  representatives.  The  latter  are  not  neces- 
sarily Americans,  frequently  being  natives  or  other  foreigners.  A 
complete  list  of  the  American  Consuls  in  Latin  America  and  their 
stations  will  be  found  on  page  522. 

The  Chief  Service  of  American  Consuls. — ^The  American  Consul 
acts  as  the  general  representative  of  the  American  Government  in 
the  district  to  which  he  is  assigned.  His  paramount  duty  is  the 
maintenance  and  promotion  of  the  rightful  interests  of  all  Ameri- 
can citizens  and  their  protection  in  all  the  privileges  provided  for 
by  treaty  or  conceded  by  usage. 

The  Duty  of  Consular  Officers. — The  Consuls  are  charged  with 
many  other  duties.  Among  these  are  the  shipment  and  relief  of 
American  seamen;  the  adjustment  of  difficulties  in  which  the  lat- 
ter may  find  themselves;  the  making  and  forwarding  of  consular 
invoices  covering  shipments  to  the  United  States;  the  issuance  of 
proper  papers  for  ships  bound  to  American  ports,  etc.  With  re- 
spect to  foreign  trade,  the  activity  of  Consuls  is  of  but  compara- 
tively recent  origin,  but  this  branch  of  their  work  has  become 
extremely  important.  Every  consular  officer  of  the  United  States 
is  now  expected  to  have  an  intimate  knowledge  of  conditions  of 
the  trade  and  commerce  in  the  particular  district  under  his  juris- 
diction. He  is  expected  to  keep  the  Bureau  of  Foreign  and  Do- 
mestic Commerce  fully  advised  of  all  matters  of  interest  relating 
to  industry,  commerce  and  agriculture  in  the  country,  or  that 
part  thereof,  to  which  he  is  assigned.  He  is  expected  to  report 
promptly  any  new  markets  for  American  manufactures  and  prod- 
ucts; to  investigate  opportunities  for  the  sale  of  American  goods; 
and  to  examine  into  specific  trade  problems  that  may  be  referred 
to  him  for  consideration.  He  is  also  expected  to  aid  American 
commercial  travelers  by  every  means  in  his  power. 

What  American  Consuls  May  not  Do. — Under  the  rules  of  the 
Department  of  State,  American  Consuls  are  forbidden  to  supply 
any  information  relative  to  credit  standing  of  firms  or  individuals 
in  their  districts.  They  are  likewise  forbidden  to  collect  claims  or 
to  take  any  action  which  might  result  in  friction  between  them- 
selves and  natives  of  the  countries  to  which  they  are  accredited. 
An  American  Consul  cannot  be  expected  to  act  as  a  salesman  for 
an  American  manufacturer  since  he  must  maintain  the  dignity  of 


326  EXPORTING  TO  LATIN  AMERICA 

his  office  and  naturally  can  take  no  action  which  would  reflect 
upon  it  or  which  would  cause  other  Consuls  or  the  people  to 
lose  respect  for  him  and  the  United  States  Government. 

What  not  to  Expect. — Many  American  manufacturers  misun- 
derstand the  services  that  can  be  rendered  by  American  Consuls. 
The  latter  have  every  right  to  resent  advertising  circular  letters 
sent  them  by  American  firms  which  seem  to  assume  that  they  are 
in  business.  They  are  not  permitted  to  maintain  sample  rooms 
and  are  unable  to  give  more  attention  to  one  firm  than  to  an- 
other. 

It  is  unreasonable  to  expect  Consuls  to  be  possessed  of  expert 
information  upon  every  conceivable  topic  and  article;  and  all  that 
can  be  asked  is  that  they  shall  endeavor  to  obtain  the  desired  in- 
formation from  the  most  reliable  sources. 

The  Chief  Duties  of  Consuls. — Consuls  are  constantly  being 
called  upon  to  answer  inquiries  regarding  trade  opportunities  in 
their  districts.  Their  chief  service  is  to  aid,  in  the  most  prac- 
tical way,  the  establishment  of  relations  between  known  commer- 
cial houses  and  American  business  men. 

Among  their  successful  efforts  in  this  direction  have  been  the 
following :  the  circulation  of  letters  among  leading  merchants  and 
trade  organizations,  offering  the  services  of  the  Consuls  in 
obtaining  prices,  terms,  and  discounts  for  articles  for  which  it 
seemed  practicable  to  establish  a  sale;  the  cooperation  of  Consuls 
with  leading  trade  organizations  of  their  districts  in  whose  bulle- 
tins announcements  of  the  Consul  are  widely  circulated;  the  in- 
sertion of  paid  advertisements  announcing  the  fact  that  trade 
directories,  catalogs,  and  information  regarding  American  prod- 
ucts were  available  at  the  consulate. 

How  to  Write  to  American  Consuls. — In  order  to  save  time  in 
both  the  transmission  and  reply,  letters  to  Consuls  should  be 
absolutely  specific  in  nature.  The  exact  problem  of  the  manu- 
facturer should  be  stated  in  concrete  manner  that  the  Consul 
may  know  immediately  just  what  is  desired.  Consuls  frequently 
complain  that  inquiries  received  by  them  are  not  carefully  worded, 
and  that  it  is  necessary  to  exchange  two  or  three  letters  before  an 
intelligent  reply  can  be  given. 

It  often  happens  that  Consuls  are  unable  to  obtain  required  in- 
formation because  of  the  fact  that  persons  from  whom  it  must  be 


AMEEICAN  CONSULS,  THEIR  SERVICE  327 

obtained  deliberately  conceal  the  facts  for  reasons  of  self-interest. 

Consuls  are  also  frequently  annoyed  with  indefinite  letters  re- 
lating to  trade  opportunities  referred  to  by  them  in  Commerce 
Reports.  When  American  exporters  seek  to  take  advantage 
of  such  opportunities,  their  answer  should  meet  every  possible  con- 
dition and  their  quotations  should  be  c.i.f.  If  such  a  quotation  can- 
not be  made,  at  least  the  freight  rate  should  be  obtained  and  stated 
in  the  letter. 

Circular  letters  sent  indiscriminately  to  all  the  Consuls  are 
greatly  to  be  discouraged,  inasmuch  as  the  conditions  in  consular 
districts  vary  greatly.  If  letters  must  be  sent  to  Consuls,  they 
should  concern  themselves  only  with  the  particular  district  to 
which  they  are  mailed. 

Manufacturers  and  importers  occasionally  send  inquiries  to 
consular  offices  relative  to  trade  opportunities,  accompanied  by 
blank  forms  which  they  wish  filled  in  and  returned.  When  such 
blank  forms  are  sent  they  should  be  forwarded  in  quadruplicate, 
inasmuch  as  the  Consul  is  invariably  compelled  to  supply  the  De- 
partment of  State  with  two  copies  of  every  report  made  by  him. 

How  Consuls  Should  Be  Addressed. — Letters  to  Consuls  should 
be  addressed  as  follows  :  American  Consul — City — Republic. 

When  communications  are  addressed  to  a  Consul  with  his  per- 
sonal name,  they  are,  in  his  absence,  forwarded  to  him  unopened, 
and  as  a  result  there  is  considerable  delay.  In  the  event  that  he 
has  left  the  Service,  important  matters  may  never  receive  any 
attention. 

Postage  should  be  fully  prepaid  and  when  answers  are  ex- 
pected, there  should  be  inclosed  an  international  post  office  coupon. 
While  Consuls  are  allowed  a  certain  fund  for  postage,  the  number 
of  letters  which  the  Consul  must  answer  frequently  exceeds  the 
sum  available  and,  for  that  reason,  letters  of  inquiry  should  in- 
clude postage  to  cover  return.  Many  letters  addressed  by  Ameri- 
can manufacturers  to  Consuls  could  be  avoided  if  the  informa- 
tion were  requested  of  the  Bureau  of  Foreign  Commerce,  Depart- 
ment of  Commerce. 

Carding  American  Inquiries. — Because  of  the  receipt  of  numer- 
ous letters  at  American  consulates  from  individuals  who  wish  to 
ascertain  whether  certain  American  firms  are  represented  or  to 
learn  the  names  of  the  different  brands  of  American  goods,  the 


328  EXPOETING  TO  LATIN  AMEEICA 

Consuls  are  requesting  American  manufacturers  who  are  so  repre- 
sented to  advise  them  accordingly.  The  Consul  General  at  Buenos 
Aires  recently  asked  that  manufacturers  who  are  represented  in 
Argentina  send  to  him  for  record  two  cards,  size  5  inches  by  3 
inches,  containing  the  following  information: 

No.  1  No.  2 

The  Article  Name  of  American  manufac- 

Trade-mark  turer  or  exporter,  address 

Name     of     American     manufac-  Article 

turer  or  exporter,  address  Trade-mark 

Name     of     local     representative,  Name  of  local  representative, 

address  address 

He  also  suggested  that  American  manufacturers  with  pur- 
chasing agents  in  Argentina  should  forward  two  similar  cards,  one 
headed  by  the  name  and  address  of  the  importing  house,  followed 
by  the  article  or  articles,  both  in  the  name  of  the  local  purchas- 
ing agent;  the  second  card  headed  by  the  name  and  address  of 
the  local  purchasing  agent,  followed  by  the  article  or  articles 
imported  and  the  name  of  the  American  exporter. 

How  to  Request  Information,. — American  Consuls  frequently 
find  the  requests  for  information  received  from  manufacturers 
extremely  vague.  One  of  them  has  suggested  the  following  list  in 
order  that  the  Consul  may  render  the  most  intelligent  service: 

1.  If  similar  goods  are  sold  what  are  the  prices  quoted  ? 

2.  What  is  the  import  tariff? 

3.  In  what  manner  should  merchandise  be  packed? 

4.  Give  rates  and  discounts  of  competing  countries. 

5.  Best  way  of  transportation  with  freight  rates. 

6.  Are  consular  invoices  needed?  How  should  they  be  made 
out? 

7.  What  are  the  fees  charged  by  customs  brokers  for  making 
entry  ? 

8.  Are  there  any  other  charges? 

9.  In  what  language  should  correspondence  be  conducted  ? 

10.  Is  there  a  duty  on  catalogs? 

11.  What  sort  of  action  do  you  recommend  for  the  introduction 
of  merchandise? 


AMERICAN  CONSULS,  THEIE  SERVICE  329 

Cooperation  with  Consuls. — Consuls  are  desirous  of  cooperating 
with  American  merchants  and  exporters  and  they  should  be  kept 
posted  as  to  the  success  or  failure  met  with  in  handling  foreign 
trade  opportunities  found  in  the  Commerce  Reports. 

Important  results  of  such  consular  cooperation  are  of  daily 
occurrence.  Many  American  firms  who  have  taken  advantage  of 
the  trade  opportunities  outlined  by  Consuls  have  been  able  mate- 
rially to  increase  their  business.  Consuls  frequently  inform  busi- 
ness men  of  opportunities  in  their  districts,  as  a  result  of  which 
they  are  enabled  to  make  sales.  In  such  instances  the  successful 
concern  should  inform  the  Consul  responsible  for  the  original  in- 
formation, since  the  latter  will  naturally  feel  a  greater  interest 
and  may  be  even  more  successful  in  promoting  the  sale  of  other 
American  manufactures. 

How  Consuls  Can  Assist  Commercial  Travelers. — One  of  the 
services  which  a  Consul  can  render,  and  of  which  the  commercial 
traveler  should  not  fail  to  avail  himself,  is  that  of  furnishing 
information  regarding  local  conditions  in  a  particular  branch  of 
trade.  The  representative  of  an  American  house,  before  making 
any  visits  to  merchants,  should  call  upon  the  Consul  for  an  inter- 
view and  for  advice  and  suggestions.  These,  by  reason  of  the 
Consul's  knowledge,  will  be  found  valuable  and  will  often  save 
much  time  and  expense.  Consuls  frequently  complain  that  they 
are  unaware  of  the  presence,  in  their  districts,  of  agents  or  travel- 
ing representatives  of  American  firms.  They  often  hear  of  oppor- 
tunities for  the  sale  of  American  manufactures  and  if  the  agent 
makes  himself  known  they  are  in  a  position  to  aid  him  very 
materially. 

Another  service  which  the  Consul  can  render  the  traveler  is  to 
obtain  for  him  entree  to  the  clubs  and  the  best  social  and  busi- 
ness circles.  For  this  purpose  proper  credentials  are  needed,  and 
such  introductions  are  invaluable  as  they  greatly  influence  trade. 

Sending  Catalogs  to  Consuls. — In  almost  every  consulate  in 
Latin  America  are  found  the  catalogs  of  American  manufacturers. 
These  are  used  more  frequently  in  some  consulates  than  in  others 
and  the  value  of  such  distribution  depends  upon  the  individual 
efforts  of  the  Consul  to  whom  they  are  sent.  Generally  speaking, 
the  sending  of  catalogs  to  Consuls  is  unproductive  of  results, 
because  of  the  fact  that  importers  and  manufacturers  in  Latin 


330  EXPOKTING  TO  LATIN  AMEEICA 

America  only  infrequently  ask  Consuls  for  information,  depend- 
ing upon  the  personal  visits  of  salesmen  and  their  established  com- 
mission house  arrangements.  However,  when  catalogs  are  for- 
warded to  American  Consuls  they  should  invariably  be  accom- 
panied by  a  price  list  and  discount  sheet,  for  the  reason  that 
otherwise  they  are  of  no  value. 

The  Distribution  of  Catalogs  by  Consuls. — Business  houses  some- 
times send  catalogs  to  Consuls  in  Latin  America  to  be  distributed 
to  persons  interested.  Such  catalogs  are  frequently  forwarded 
with  no  provision  whatever  for  postage  or  the  expense  of  dis- 
tribution. Consuls  should  not  be  expected  to  distribute  catalogs; 
when  they  are  sent  to  be  placed  with  firms  who  may  be  inter- 
ested, provision  should  be  made  for  the  expense  of  their  delivery. 

Consuls  Should  Be  Furnished  Names. — When  corresponding 
with  Consuls  regarding  the  distribution  of  catalogs,  the  manu- 
facturer should  inclose  a  list  of  the  dealers  to  w^hom  catalogs  have 
been  sent  direct.  In  the  event  that  there  have  been  any  omissions, 
they  will  be  quickly  noted.  In  the  case  of  periodicals,  a  list  of 
the  subscribers  in  a  given  town  or  district  should  be  supplied  the 
Consul  who  can  then  more  intelligently  distribute  surplus  copies. 

Catalogs  in  Consular  Libraries, — It  is  interesting  to  mark  the 
difference  in  the  efficiency  of  American  consular  representatives, 
particularly  in  the  matter  of  catalogs  and  booklets.  Occasionally 
Consuls  report  that  libraries  of  catalogs  are  of  no  avail  and  but 
infrequently  consulted.  On  the  other  hand,  many  Consuls  have 
been  able  to  obtain  remarkable  results  in  furthering  export  trade 
interests.  Generally  speaking,  it  will  prove  advantageous  to  for- 
ward to  Consuls  catalogs  accompanied  with  full  details  regarding 
terms,  commission  discounts,  etc.,  that  any  information  desired 
may  be  supplied  upon  demand.  The  greatest  problem  in  con- 
nection with  catalogs  sent  to  Consuls  is  to  make  them  really  use- 
ful. Because  of  this,  a  number  of  Consuls,  for  the  purpose  of 
arousing  the  interest  of  business  houses  in  their  districts,  have 
prepared  printed  or  typewritten  lists  of  the  catalogs  sent  to  them. 
These  lists  are  distributed  among  prospective  buyers  and  the  plan 
has  often  had  good  results. 

The  Use  of  Trade  and  Technical  Journals. — Many  Consuls  find 
it  advantageous  to  receive  trade  and  tcelinical  journals  which, 
after  being  read  in  the  consulate,  are  placed  on  the  reading  tables 


AMERICAN  CONSULS,  THEIR  SERVICE  331 

of  the  larger  clubs.  The  journals  are  distributed  according  to 
the  character  of  the  members  of  the  organizations.  The  value 
of  advertisements  in  these  publications  is  thus  increased,  as  such 
distribution  makes  it  possible  for  a  larger  number  of  prospective 
buyers  to  see  the  advertisements  than  would  otherwise  be  the 
case. 

How  Consuls  Advertise  for  Trade  Inquiries. — Some  Consuls 
have  adopted  the  policy  of  advertising  in  order  to  bring  to  the 
attention  of  possible  agents  and  importers  the  advantages  of 
American  manufactures.  In  such  consulates,  when  letters  are 
received  from  American  manufacturers  who  wish  to  establish  trade 
relations,  they  are  listed  for  advertisement  in  the  principal  pa- 
pers, the  editor  of  which  has  allowed  the  Consuls  sufficient  space 
for  the  purpose.  The  "opportunities"  are  numbered  and  appear 
in  the  papers  for  a  certain  number  of  days.  Experience  has  proved 
that  the  scheme  is  very  successful  and  many  individuals  have 
sought  file  Consuls  because  of  the  advertisements.  The  names 
of  those  interested  are  then  properly  indexed  on  cards,  and  these 
inquiries  are  then  used  as  the  basis  for  "trade  opportunity"  re- 
ports, which  appear  in  the  Commerce  Reports,  bringing  the  matter 
to  the  attention  of  the  manufacturers  of  the  United  States. 

As  a  concrete  example  of  this  work  may  be  cited  the  experience 
of  the  Consulate  General  at  Rio  de  Janeiro.  As  a  result  of  the 
effort  of  the  Consul  General  at  that  point,  the  Journal  do  Comer- 
do,  one  of  the  leading  papers  of  Brazil,  publishes  in  its  commer- 
cial section,  free  of  cnarge,  the  names  and  addresses  of  American 
firms  seeking  trade  with  Brazil,  which  are  supplied  by  the  Ameri- 
can Consul.  As  the  lists  appear  two  or  three  times  weekly  the 
value  to  American  exporters  of  this  service  will  be  readily  appre- 
ciated, particularly  as  this  paper  reaches  the  most  influential  im- 
porters and  agents. 

Other  Uses  of  Catalogs  Sent  Consuls. — Frequently,  upon  request, 
and  as  often  without  definite  suggestion,  Consuls  arrange  to  place 
the  catalogs  sent  them  in  the  local  Chambers  of  Commerce  or  in 
the  reading  rooms  of  clubs  frequented  by  merchants  and  importers. 
Such  distribution  is  very  valuable,  as  it  reaches  the  individuals 
who    are    particularly    interested. 

Consuls  Require  Advertising  Matter  in  Language  of  Country. — 
Catalogs  and  price  lists  sent  to  American  Consuls  in  Latin  Amer- 


33:3  EXPORTmCr  TO  LATIK  AMERICA 

ica  should  be  printed  in  Spanish,  except  in  the  case  of  Brazil  where 
Portuguese  should  be  used,  and  of  Haiti  in  which  French  is 
spoken.  When  Consuls  are  approached  for  information  relative 
to  American  manufactures  and  products,  they  are  unable  to  lend 
the  fullest  assistance  unless  the  catalogs  sent  them  are  in  the 
language  of  the  people. 

Payment  of  Duties  on  Samples  Sent  to  Consuls. — Many  Amer- 
ican houses  frequently  send  samples  of  their  products  to  American 
Consuls,  with  the  desire  that  they  be  placed  in  the  hands  of 
importers  or  merchants  who  would  likely  be  interested.  The  regu- 
lations relative  to  samples  differ  in  the  various  republics,  but 
as  a  general  rule  samples  which  are  not  salable  are  admitted 
free  of  duty  and  on  all  samples  which  are  salable  duty  is  col- 
lected. In  many  instances  consular  officers  have  had  to  pay  duty 
on  parcels  only  to  find  that  they  were  of  no  use.  As  no  fund  is 
provided  for  such  payments,  the  losses  were  personal  ones.  When 
American  manufacturers  wish  to  send  samples  to  Consuls  (or 
even  to  dealers),  they  should  ascertain  in  advance  the  duty  thereon 
and  an  international  post-office  money  order  or  draft  should  be  re- 
mitted to  cover  the  duty  which  may  be  incurred. 

Displays  of  Samples  in  Consulates. — Although  the  regulations 
do  not  authorize  it,  in  a  number  of  consulates  arrangements 
have  been  made  to  display  articles  forwarded  by  American 
manufacturers  in  order  that  they  may  attract  the  attention  of 
local  importers.  Some  Consuls  keep  on  display  samples  sent 
them  until  arrangements  have  been  concluded  for  local 
agencies. 

The  Value  of  Conferences  with  Consuls. — From  time  to  time 
American  Consuls  return  to  the  United  States  on  visits.  While  in 
this  country  the  Department  of  Commerce  expects  them  to  co- 
operate in  every  possible  way  with  commercial  bodies  and  indi- 
vidual manufacturers  who  may  wish  to  confer  with  them  in 
reference  to  trade  extension.  The  presence  of  Consuls  who  are 
in  the  United  States  is  made  known  through  the  Commerce 
Reports,  and  secretaries  of  business  organizations  should  care- 
fully note  the  advantage  of  personal  contact  with  these  represen- 
tatives. 

A  Valuable  Service  of  Consuls. — One  of  the  most  useful  services 
rendered  by  American  Consuls  is  available  to  manufacturers.    This 


AMERICAN  CONSULS,  THEIR  SERVICE  333 

is  the  reporting  of  specific  opportunities  for  making  trade  con- 
nections. A  reading  of  Commerce  Reports  will  be  found  pro- 
ductive of  results  if  proper  use  is  made  of  the  information  given. 

List  of  Consulates. — A  list  of  the  American  consulates  in  the 
Latin  American  republics  is  given  on  page  522  of  the  Appendix. 


CHAPTER  XXV 

ORGANIZED  EFFORTS  FOR  PAN-AMERICAN  COMMERCIAL  RELA- 
TIONS.  THE  PAN-AMERICAN  BUREAU.  CONFERENCES, 
CONVENTIONS 


ORGANIZED   EFFORTS   FOR   PAN-AMERICAN   COMMERCIAL 

RELATIONS 

Introduction. — Within  the  last  decade,  much  organized  effort 
has  been  devoted  to  the  npbnikling  of  American  trade  with  Latin 
America.  Generally  speaking,  this  effort  has  been  directed  through 
the  following  channels: 

1.  United  States  Government:  Department  of  Commerce,  Bu- 
reau of  Foreign  and  Domestic  Commerce. 

2.  The  Pan-American  Union,  Washington,  D.  C. 

3.  Organizations  such  as  the  Philadelphia  Commercial  ]\Iu- 
seum,  the  National  Association  of  Manufacturers,  the  American 
Manufacturers'  Export  Association,  etc. 

4.  Business  organizations  such  as  the  Chicago  Association  of 
Commerce,  the  Latin  American  Foreign  Trade  Association  (now 
the  Business  Men's  League  of  St.  Louis),  Chambers  of  Commerce, 
Business  Men's  Leagues,  and  trade  bodies  in  general. 

5.  Foreign  trade  conferences  and  conventions. 

The  Pan-American  TTnion,. — The  Pan-American  LTnion  is  a  con- 
federation of  twenty-one  nations  under  the  offfcial  title,  "The 
International  Union  of  the  American  Republics,"  being  composed 
of  all  the  independent  nations  of  the  Western  Hemisphere.  It 
was  founded  in  1890  and  its  chief  object  is  the  development  and 
conservation  of  commerce  and  polity  among  the  American  repub- 
lics. It  is  an  independent  international  institution,  not  a  subor- 
dinate Bureau  of  the  United  States  Government.  Its  governing 
board  is  composed  of  the  diplomatic  representatives  in  Washing- 
ton of  the  Latin  American  governments,  and  the  Secretary  of  State 
of  the  United  States.  This  board  elects  a  Director  General  and 
Assistant  Director. 

334 


EFFORTS  FOR  COMMERCIAL  RELATIONS        335 

The  Union  in  Trade  Development. — The  Pan-American  Union, 
through  correspondence  with  manufacturers,  exporters,  and  im- 
porters in  the  United  States  and  Latin  America,  advises  them  re- 
garding trade  opportunities  and  conditions  in  tlie  various  Ameri- 
can republics.  It  answers  annually  thousands  of  letters  relating 
to  Latin  America.  It  supplies  newspapers  and  special  writers, 
lecturers,  and  students  with  information  desired  regarding  the 
various  phases  of  history  and  political,  social,  educational,  and 
general  progress  of  the  American  nations. 

It  advises  capitalists  and  investors  concerning  opportunities  for 
developing  resources,  building  railroads,  and  starting  new  indus- 
tries. 

It  informs  mining,  hydraulic,  and  electrical  engineers  relative 
to  the  obtaining  or  operating  of  mines,  the  building  of  water 
power  plants,  and  the  establishment  of  electrical  power  and  light 
plants. 

It  supplies  information  to  agriculturists,  laborers,  and  emi- 
grants concerning  farms,  conditions  of  employment,  and  homes 
in  the  new  lands.  It  advises  lawyers  concerning  the  laws,  codes, 
and  statutes  of  each  republic. 

It  supplies  information  to  libraries  and  authors,  relative  to 
books  and  writers  of  the  American  nations. 

The  Pan-American  Biilletin. — The  Union  publishes  a  monthly 
journal,  the  Pan-American  Bulletin,  a  magazine  of  two  hundred 
pages,  which  has  a  circulation  of  about  five  thousand  copies.  The 
Bulletin  contains  articles  of  interest  relative  to  conditions  in  Latin 
America,  a  review  of  articles  that  appear  in  the  magazines  con- 
cerning Pan-America,  a  series  of  Pan-American  notes  which  are 
not  otherwise  available,  the  subject-matter  of  consular  reports, 
the  reviews  of  the  commerce  of  the  various  republics  for  the  past 
fiscal  year,  articles  and  notes  regarding  the  commercial  condi- 
tions, and  other  interesting  items  of  many  kinds.  This  publica- 
tion may  be  obtained  at  the  following  rates : 

English   edition $2.00 

Spanish   edition 1,50 

Portuguese    edition 1.00 

French  edition 75 

Subscriptions  to  the  Bulletin  may   be   addressed  to  the    Pan- 


836  EXPORTING  TO  LATIN  AMERICA 

American  Union,  17th  and  B  Streets,  N.  W.,  Washington,  D.  C. 

Other  Publications. — The  Union  has  compiled  a  series  of  mono- 
graphs relating  to  the  American  republics,  which  answer  in  suc- 
cinct form  two-thirds  of  the  questions  that  the  average  person 
may  wish  to  know  relative  to  a  country  which  it  is  desired  to  visit, 
in  which  capital  may  be  invested,  or  with  which  it  may  be  desired 
to  establish  business  relations.  The  Union  also  prepares  and  pub- 
lishes a  comprehensive  variety  of  books  and  pamphlets  relating  to 
the  American  republics.    For  a  list  and  prices  see  page  488. 

Library  Maintained  by  the  Bureau. — The  Union  maintains  a 
very  large  library,  known  as  the  Columbus  Memorial  Library, 
where  there  are  approximately  thirty  thousand  volumes,  constitut- 
ing a  valuable  collection  relating  to  the  American  republics.  It 
also  subscribes  for  the  leading  reviews,  daily  newspapers,  and  offi- 
cial gazettes  of  the  Latin  American  countries. 

Work  of  the  Bureau  with  Trade  Bodies. — One  of  the  valuable 
services  rendered  by  the  Union  is  its  close  relation  to  Chambers 
of  Commerce  and  other  commercial  organizations  in  North  and 
South  America.  It  disseminates  through  these  channels  useful 
information  relative  to  trade  conditions  in  the  various  American 
republics,  and  obtains  from  them  much  valuable  data. 

The  Maintenance  of  the  Bureau. — The  Bureau  is  essentially  an 
international  institution,  maintained  by  contributions  from  the 
Latin  American  countries  and  the  United  States.  The  contribu- 
tions are  based  in  proportion  to  the  population,  always  including 
the  United  States  in  the  calculations.  The  basis  is  now  $125,000, 
and  the  proportion  of  the  Latin  American  countries  is  $50,000. 

The  Directors. — The  Director  General  of  the  institution  is  Hon. 
John  Barrett,  to  whom,  in  a  large  measure,  the  efficiency  of  the 
Union  is  due.  The  Assistant  Director,  and  also  Secretary  of  the 
Governing  Board,  is  Francisco  J.  Yanes,  a  Venezuelan  by  birth 
but  long  associated  with  the  Union  in  responsible  positions. 

The  Home  of  the  Union. — The  new  building  of  the  Pan-Amer- 
ican Union  in  Washington  is  a  notable  and  beautiful  edifice  which 
cost,  including  the  ground,  approximately  $1,000,000.  Three- 
fourths  of  this  sum  was  contributed  by  Mr.  Andrew  Carnegie, 
while  the  remainder,  together  with  the  quotas  of  the  other  re- 
publics, amounted  to  about  $250,000. 

Organizations  for  Foreig^i  Trade  Development. — The  factor  of 


EFFORTS  FOR  COMMERCIAL  RELATIONS         337 

greatest  importance  in  the  development  of  business  with  Latin 
America  is  individual  effort  and  no  manufacturer  can  possibly 
hope  to  achieve  success  who  does  not  recognize  this  fact.  Within 
the  last  decade  business  organizations.  Chambers  of  Commerce, 
and  trade  bodies  of  various  kinds  have  agitated  the  extension  of 
American  trade  with  Latin  America.  Unfortunately,  much  of  the 
agitation  has  taken  the  form  of  enthusiastic  banqueting,  the  pas- 
sage of  resolutions,  and  a  considerable  amount  of  unintelligent 
effort.  There  are,  however,  a  number  of  organizations  which  have 
rendered  extremely  valual:)le  service  and  will  continue  to  do  so 
by  reason  of  the  experience  they  have  already  gained.  Many  of 
the  important  export  successes  of  large  manufacturing  establish- 
ments are  due  to  the  cooperative  assistance  rendered  by  such  trade 
bodies.  Among  the  most  important  may  be  mentioned  the  follow- 
ing: 

1.  Philadelphia  Commercial  Museum. 

2.  National  Association  of  Manufacturers. 

3.  American  Manufacturers'  Export  Association. 

4.  Business  Men's  League  of  St.  Louis  (Foreign  Trade  Bureau 
— formerly  Latin  American  Foreign  Trade  Association). 

5.  Chicago  Association  of  Commerce. 

The  work  of  these  organizations  is  described  under  the  appro- 
priate head. 

The  Philadelphia  Commercial  Museum. — The  Philadelphia  Com- 
mercial Museum  was  one  of  the  pioneer  organizations  in  the 
development  of  business  with  Latin  America.  It  was  established 
in  1894,  and  is  maintaine,d  by  contributions  from  the  State 
and  the  municipality,  and  by  the  memberships  of  individual  man- 
ufacturers. 

Services  of  the  Philadelphia  Commercial  Museum. — The  For^ 
eign  Trade  Bureau  of  the  Philadelphia  Commercial  Museum  ren- 
ders to  its  members  the  following  services : 

1.  It  publishes  an  export  trade  paper  called  Commercial 
America,  which  contains  information  of  interest  to  the  foreign 
buyer.  The  Spanish  edition  is  circulated  in  Latin  America.  In 
this  publication  is  carried  a  classified  list  of  manufacturers,  and 
included  in  this  list  are  the  names  of  the  members  of  the  Foreign 
Trade  Bureau  and  advertisers.  The  publication  also  contains  a 
column  headed,  "Foreign  Agents  Wanted  for  American  Goods." 


338  EXPORTING  TO  LATIN  AMEEICA 

The  names  of  advertisers  are  published  under  this  heading  and 
advertising  nonmembers  may  also  use  it. 

2.  The  Bureau  issues  a  weekly  export  bulletin  which  includes 
inquiries  received  from  foreign  firms  for  American-made  goods, 
together  with  general  export  news  items,  changes  in  tariff,  trade- 
marks, and  patent  laws,  travelers'  regulations,  business  sugges- 
tions and  trade  openings,  a  schedule  of  mail  and  freight,  steam- 
ship sailings,  etc. 

3.  The  members  of  the  Bureau  are  supplied  information  con- 
cerning all  matters  bearing  upon  the  development  of  business  in 
any  foreign  country. 

4.  It  replies  to  specific  inquiries  covering  such  questions  as 
consular  invoices,  customs  regulations,  and  duties,  and  more  gen- 
eral matters  such  as  the  character  and  possibilities  of  particu- 
lar markets. 

5.  It  answers  specific  inquiries  for  credits  and  supplies  infor- 
mation regarding  foreign  firms. 

6.  Translates  business  correspondence  into  or  from  any  com- 
mercial language. 

7.  Prepares  reports  on  commercial  conditions,  business  oppor- 
tunities, and  new  enterprises. 

8.  Supplies  publicity  for  the  manufacturer's  name  and  his  prod- 
ucts by  means  of  typewritten  and  printed  lists  circulated  among 
foreign  buyers  of  American  goods. 

9.  Supplies  assistance  in  collecting  accounts  of  delinquent  for- 
eign buyers,  at  nominal  charges. 

10.  Renders  assistance  in  securing  reliable  agents  in  any  for- 
eign country. 

Basis  of  Service  of  the  Commercial  Museum. — The  service  is 
based  either  on  outright  memberships  or  advertisements  in  its 
organ.  Commercial  America. 

The  terms  for  information  regarding  foreign  firms  are  as  follows : 
With  contracts  for  $200— 50c. ;  $300— 75c. ;  $450— $1.25 ;  $800 
—$2.50. 

The  translation  of  business  correspondence  on  the  following  basis : 
With  contracts  for  $200— 50c.;  $300— 75c. ;  $450— $1.25;  $800 
—$2.50. 

Translations  are  charged  for  by  the  Museum  at  15  cents  per  hun- 
dred words  from  foreign  languages  into  English,   25   cents  per 


EFFOETS  FOR  COMMERCIAL  RELATIONS        339 

hundred  from  English  into  foreign  languages.  These  prices  do 
not  include  circulars  nor  catalog  matter,  for  which  there  are 
other  charges. 

The  cost  of  advertising  in  the  Museum's  organ,  Commercial 
America,  is  as  follows: 

One  full  page  with  service,  $800;  Half -page,  $-150;  Quarter- 
page,  $300;  Eighth-page,  $200. 

Membership  in  the  Museum  is  not  confined  to  one  state,  but 
service  is  also  being  rendered  to  firms  in  almost  every  large  city 
of  the  United  States;  any  manufacturer,  anywhere,  is  eligible  for 
membership.  The  Association  maintains  a  library,  which  contains 
50,000  volumes  and  is  extraordinarily  complete  in  the  matter  of 
commercial  works  of  reference,  documents,  and  consular  reports 
of  foreign  Governments,  etc.  Its  home  is  in  a  large  building  on 
34th  Street,  below  Spruce. 

The  National  Association  of  Manufacturers. — The  National  As- 
sociation of  Manufacturers,  New  York,  was  founded  in  1895. 
It  now  has  a  very  large  membership  and  one  of  the  important 
services  it  renders  its  members  is  in  its  Department  of  Foreign 
Trade.  The  work  of  this  organization  is  similar  to  that  of  the 
Philadelphia  Commercial  Museum.  The  Association  also  pub- 
lishes two  organs  for  circulation  in  English  and  Spanish  speak- 
ing countries,  one  called  Export  American  Industries,  the  other 
(the  Spanish  edition).  Industr'ms  Americanas. 

The  Chicago  Association  of  Commerce. — The  foreign  trade  di- 
vision of  the  Chicago  Association  of  Commerce  was  one  of  the  first 
organizations  to  carry  on  concrete  work  in  the  development  of 
foreign  trade.  It  established  in  the  city  of  Buenos  Aires  a  branch 
office  for  the  purpose  of  serving  the  interests  of  the  Chicago 
market  in  that  city  and  in  the  republics  of  Argentina,  Brazil, 
Uruguay,  Chile,  etc.  This  office  is  now  conducted  by  the  De- 
partment of  Commerce,  Bureau  of  Foreign  and  Domestic  Com- 
merce. 

The  Work  of  the  Association  in  South  America. — The  Associa- 
tion's office  in  South  America  is  of  assistance  to  its  members  in 
the  following  ways : 

1.  Obtaining  agents  and  placing  lines  of  goods  to  the  best  pos- 
sible advantage. 

2,  Obtaining  general  and  local  salesmen  for  members. 


340  EXPORTING  TO  LATIN  AMERICA 

3.  Securing  information  relative  to  the  possibilities  for  the 
sale  of  its  goods  by  members. 

4.  Missionary  work  for  the  purpose  of  emphasizing  in  the  Latin 
American  market  the  superiority  of  American  manufactures. 

5.  The  establishment  of  sample  rooms  for  members,  with  an 
exhibition  of  merchandise.  The  sample  room  representation  has 
been  at  the  expense  of  individual  members  who  have  taken  advan- 
tage thereof. 

Other  Services  of  the  Foreign  Trade  Division. — In  addition  to 
continuing  a  foreign  trade  representative  residing  in  Buenos  Aires, 
the  Association  has  recently  established  the  office  of  Foreign  Trade 
Commissioner  in  connection  with  the  Chicago  staff  of  the  organi- 
zation. The  duties  of  the  foreign  trade  commissioner  are  to 
render  every  possible  service  to  members  of  the  Association  who 
are  interested  in  the  subject  of  foreign  business,  and  to  put  such 
individual  members  in  touch  with  foreign  requirements  and  busi- 
ness opportunities,  not  only  in  South  America  but  also  with  the 
whole  world  outside  of  the  United  States.  The  manufacturers 
who  had  representation  in  the  sample  room  of  the  Association  in 
Buenos  Aires  arranged  therefor  on  the  basis  of  paying  the  expenses 
incidental  to  representation,  in  addition  to  their  Association  mem- 
bership dues. 

How  the  Association  Extends  Its  Usefulness. — Recently  the  As- 
sociation, recognizing  that  its  field  of  usefulness  might  be  expanded, 
decided  to  extend  the  privilege  of  becoming  sustaining  members 
of  the  foreign  trade  division  to  manufacturers  in  the  states  of 
Michigan,  Ohio,  Indiana,  Kentucky,  Illinois,  Wisconsin,  Minne- 
sota, Iowa,  and  Missouri. 

The  Cost  of  Membership. — The  cost  of  a  sustaining  membership 
of  the  foreign  trade  division  is  $10  annually.  The  cost  of  repre- 
sentation in  the  exhibition  in  Buenos  Aires  is  dependent  upon 
special  conditions.  The  address  of  the  Association  is  10  South 
LaSalle  Street,  Chicago,  Illinois. 

Massachusetts  Trade  Board. — This  organization  was  established 
under  the  auspices  of  the  Massachusetts  State  Board  of  Labor 
and  Industry  in  October,  1914,  its  purpose  being  to  enlarge  the 
markets  of  Massachusetts'  manufacturers.  It  cooperates  Avith  the 
various  government  bureaus;  the  principal  business  organizations 
in  foreign  countries ;  domestic  importing  houses,  foreign  importing 


EFFORTS  FOR  COMMERCIAL  RELATIONS         341 

houses,  and  other  sources  of  trade  opportunity  and  information. 
For  those  manufacturers  who  have  no  facility  for  initiating  for- 
eign business,  the  Board  provides  a  translation  service,  financial 
records  of  foreign  firms,  special  reports  on  foreign  markets,  lists 
of  suitable  agents  abroad,  and  numerous  other  services.  Its  office 
is  in  Boston. 

American  Manufacturers'  Export  Association. — The  American 
Manufacturers'  Export  Association,  Manhattan  Life  Building,  6G 
Broadway,  New  York,  was  incorporated  in  1911  with  the  prime 
object  of  fostering  foreign  trade.  It  is  cooperative  in  nature 
and  maintains  very  close  relations  with  the  United  States  consular 
representatives  abroad,  Chambers  of  Commerce  and  other  com- 
mercial bodies  in  foreign  countries.  It  likewise  possesses  corre- 
spondents throughout  the  world  and  advises  its  members  of  busi- 
ness opportunities  and  developments  abroad.  It  publishes  a 
monthly  bulletin,  issued  exclusively  to  its  members,  in  which  much 
information  is  given  on  topics  of  practical  interest  to  exporters. 
It  also  arranges  monthly  luncheons,  on  which  occasions  speakers, 
usually  authorities  on  their  subjects,  address  the  members,  and 
opportunity  is  afforded  those  present  to  ask  questions  and  to  par- 
ticipate in  a  general  discussion.  An  interesting  feature  of  the 
Association's  work  is  an  emplo3Tnent  bureau  limited  strictly  to 
the  export  field.  The  Secretary  of  the  Association  maintains  a 
file  of  applicants  for  positions  whose  qualifications  and  references 
are  carefully  investigated.  Members  can  obtain  in  this  way  the 
services  of  reliable  and  experienced  men  in  the  export  field.  The 
Association  likewise  investigates  projects  of  a  questionable  nature 
and  warns  its  members  against  the  dishonest  or  unscrupulous  in- 
dividuals who  seek  to  take  advantage  of  American  business  men. 
As  far  as  it  is  possible,  members  are  advised  of  the  contemplated 
visits  of  foreign  merchants  to  New  York,  and  their  names  and 
addresses  are  provided. 

Other  Services  Rendered. — Other  features  of  the  work  are  the 
collection  of  drafts  on  foreign  countries  by  special  arrangement 
with  the  bankers  of  the  Association.  Members  are  given  the  privi- 
lege of  receiving  free  information  on  questions  requiring  expert 
judgment  and  advice  in  connection  with  the  forwarding  of  ship- 
ments. A  certain  number  of  credit  reports  are  also  supplied.  The 
Association  maintains  a  list  of  patent  and  trade-mark  agents,  and 


342  EXPORTING  TO  LATIN  AMERICA 

cooperates  with  its  members  in  obtaining  special  rates  through 
a  New  York  firm.  It  also  helps,  through  its  local  forwarding  con- 
nections, to  supply  c.i.f.  quotations  to  all  ports  of  the  world.  It 
aids  its  members  in  obtaining  lists  of  competent  translators  as  well 
as  printers  who  specialize  in  foreign  languages.  The  membership, 
costing  $50  yearly,  is  open  to  all  manufacturers. 

The  Chamber  of  Commerce  of  the  "United  States. — The  purpose 
of  this  organization  is  expressed  in  its  title.  Many  problems  in- 
volved in  foreign  trade  are  given  serious  consideration,  and  its 
efforts  to  extend  the  foreign  commerce  of  the  United  States  are 
valuable  to  all  exporters.     Its  office  is  in  Washington. 

The  National  Foreign  Trade  Council. — A  result  of  the  first  Na- 
tional Foreign  Trade  Convention  at  Washington,  May,  1914,  was 
the  organization  of  the  National  Foreign  Trade  Council,  for  the 
purpose  of  promoting  cooperation  by  the  Government,  and  the  com- 
mercial, and  industrial,  and  financial  interests  in  foreign  trade. 
A  further  object  was  to  coordinate  the  various  foreign  trade 
activities  of  the  United  States.  The  Council  has  an  authorized 
maximum  membership  of  fifty  business  men,  including  merchants, 
manufacturers,  railroad  and  steamship  men,  and  bankers,  repre- 
senting all  sections  of  the  United  States  and  collectively  stand- 
ing for  the  general  interest  of  all  elements  engaged  in  foreign 
trade.  It  is  nonpolitical  and  nonpartisan,  its  function  being  in- 
vestigatory and  advisory.  It  seeks  effectively  to  cooperate  with 
other  organizations  in  the  encouragement  of  a  sound  national  for- 
eign trade  policy.  Through  its  committees  the  Council  is  con- 
stantly investigating,  and  from  time  to  time  publishes  reports  upon 
problems  arising  in  oversea  commerce. 

Business  Men's  League  of  St.  Louis. — A  number  of  other  busi- 
ness organizations  are  making  vigorous  efforts  to  aid  their  mem- 
bers in  extending  their  foreign  trade.  Among  these  is  the  Busi- 
ness Men's  League  of  St.  Louis,  which  absorbed  the  Latin  Ameri- 
can Foreign  Trade  Association,  one  of  the  first  associations  founded 
for  the  purpose  of  increasing  the  export  trade  of  this  country. 
Under  its  auspices  delegations  of  business  men  have  been  sent 
to  Mexico,  Central  and  South  America.  It  was  also  the  first  or- 
ganization to  establish  an  Export  Managers'  Bureau  which  is 
described  elsewhere.  The  Detroit  Chaml)er  of  Commerce  is  an 
organization  which  is  making  a  vigorous  efi:ort  to  extend  the  for- 


EFFORTS  FOR  COMMERCIAL  RELATIONS         343 

eign  trade  of  Detroit.  An  interesting  feature  of  its  propaganda 
are  the  advertisements  in  export  trade  papers  in  which  are  set 
forth  the  advantages  of  Detroit  as  an  export  center.  The  Cleve- 
land Chamber  of  Commerce  has  recently  made  arrangements  with 
the  Federal  Government  to  act  as  a  branch  office  of  the  Bureau 
of  Foreign  and  Domestic  Commerce.  The  Pittsburgh  Foreign 
Trade  Commission  is  serving  the  members  of  a  large  manufac- 
turing district  in  the  general  field  of  foreign  trade.  The  Mer- 
chants' Association  of  New  York  carries  on  an  important  work  in 
foreign  trade  extension.  There  is  hardly  a  business  organization 
in  the  United  States  which  is  not  seriously  considering  ways  and 
means  of  furthering  the  export  interests  of  its  members. 

Clubs  Devoted  to  Pan-America. — There  are  a  number  of  impor- 
tant clubs  and  societies  for  the  development  of  better  relations  with 
the  Latin  American  countries.  These  will  be  found  listed  and 
described  on  page  531  of  the  Appendix. 


CONVENTIONS   AND   CONFERENCES   RELATING   TO    LATIN 
AMERICAN   TRADE 

Importance  of  Latin  American  Conferences  and  Conventions. — 

During  the  past  few  years  the  interest  in  Latin  American  trade 
extension  has  found  expression  in  a  number  of  important  conven- 
tions and  conferences.  These  have  been  held  in  various  cities 
mainly  for  the  purpose  of  considering  business  conditions  and 
plans  to  increase  the  trade  between  the  United  States  and  the 
Latin  American  republics.  There  have  also  been  held  a  number 
of  conferences  for  official  discussion  of  the  relations  between  the 
United  States  and  the  Latin  American  republics,  with  a  view  to 
making  them  more  intimate.  The  addresses  which  have  been 
delivered  at  these  conferences  and  the  discussions  which  have 
taken  place  have  been  among  the  most  valuable  contributions  to 
export  trade  literature.  The  proceedings  in  many  instances  have 
been  printed  and  are  available  for  those  who  are  interested.  A 
study  thereof  will  afford  information  regarding  many  phases  of 
the  Latin   American   trade   problem. 

Some  of  the  Conferences. — Among  the  recent  conferences  are 
the  following: 


344  EXPORTINCt  TO  LATIN  AMEEICA 

1.  Tlte  Pan-American  Commercial  Conference.  Held  Febru- 
ary 13-17,  1911,  Washin^on,  D.  C.  This  conference  was  held 
in  the  Pan-American  Union  Building,  and  was  attended  by  the 
delegates  of  many  of  the  principal  commercial  organizations,  the 
leading  manufacturing,  exporting,  and  importing  establishments 
of  the  United  States,  educational  institutions,  Latin  American 
i^mbassadors,  Ministers,  and  Consuls,  etc.  The  proceedings,  pub- 
lished by  the  Pan-American  LTnion,  cost  $1.25. 

2.  The  National  Foreign  Trade  Convention.  Held  at  Wash- 
ington, D.  C,  at  the  Hotel  Raleigh,  May  27-28,  1914.  The  For- 
eign Trade  Convention  marked  the  assemblage  of  many  repre- 
sentative business  men  and  concentrated  their  opinion  on  the 
opportunity  for  the  development  of  foreign  trade.  The  proceed- 
ings were  published,  and  may  be  had  by  addressing  the  Secre- 
tary, National  Foreign  Trade  Council,  Headquarters  64  Stone 
Street,  New  York,  cost  $1.50. 

3.  The  Second  National  Foreign  Trade  Convention.  Held  at 
the  Planters  Hotel,  St.  Louis,  Mo.,  January  21-22,  1915.  The 
convention  was  largely  attended  and  many  interesting  topics  were. 
discussed.  The  proceedings  have  been  published  and  may  be  ob- 
tained by  remitting  $1.50  to  the  Secretary,  National  Foreign  Trade 
Council,  64  Stone  Street,  New  York. 

4.  The  Pan-American  Financial  Congress.  Held  in  Washing- 
ton, May  30-June  2,  1915.  This  was  called  by  the  Secretary  of 
the  Treasury  for  the  purpose  of  considering  the  commercial  and 
financial  situation  which  had  arisen  from  the  European  War.  It 
was  attended  by  the  representatives  of  the  Latin  American  coun- 
tries, American  bankers,  and  delegates  specially  invited  by  the 
Secretary  of  the  Treasury.  The  proceedings  were  published  in 
the  Pan-American  Bulletin. 

5.  Meeting  of  the  American  Academy  of  Political  and  Social 
Science.  Held  May,  1915,  in  Philadelphia.  This  was  devoted  to 
a  consideration  of  inter-American  problems,  with  particular  ref- 
erence to  the  economic  situation,  and  was  attended  by  many 
distinguished  exporters  and  business  men.  The  report  of  the 
meeting,  published  both  in  ])ap('r  and  cloth  binding  ($1.00  and 
$1.50  respectively),  is  obtainable  of  the  American  Academy  of 
Political  and  Social  Science,  West  Philadelphia  Station,  Phila- 
delphia, Pa. 


EFFORTS  FOR  COMMERCIAL  RELATIONS        345 

6.  The  Latin  American  Trade  Conference  of  the  New  York,  New 
Haven,  and  Hartford  R.  R.  Co.  This  was  held  at  Boston,  De- 
cember 15,  1914.  It  was  attended  by  many  prominent  manufac- 
turers, and  several  important  addresses  on  the  subject  of  general 
trade  and  banking  conditions  in  South  and  Central  America  were 
delivered. 

7.  The  Clark  University  Conference.  This  was  held  at  Clark 
University  in  May,  1913.  A  number  of  the  most  prominent 
authorities  on  Latin  American  affairs  were  invited  to  deliver  ad- 
dresses, which  have  been  published  in  book  form.  Among  the 
speakers  were  the  Minister  of  Peru;  Hon.  John  Barrett,  the  Di- 
rector General  of  the  Pan-American  Bureau;  the  Secretary  of  the 
Pan-American  Union,  Hon.  Francisco  J.  Yanes ;  Professor  William 
R.  Shepherd.  The  addresses,  bound  in  cloth,  under  the  title  "Latin 
America,"  can  be  obtained  from  G.  E.  Stechert  &  Co.,  Boston, 
Mass. 

8.  The  Latin  American  Trade  Conference.  An  informal  Latin 
American  trade  conference  was  called  at  Washington,  D.  C,  Sep- 
tember 10,  1914,  by  the  Secretary  of  State  and  the  Secretary  of 
Commerce.  As  a  result  of  this  conference  a  Latin  American  trade 
committee  was  appointed  which  made  the  report  outlining  in  sim- 
ple form  South  American  trade  conditions.  The  report  is  ob- 
tainable from  the  National  Foreign  Trade  Council,  64  Stone 
Street,  New  York  City,  price  25  cents. 

9.  The  Harrisburg  Foreign  Trade  Conference.  November  24, 
1914,  a  foreign  trade  conference  was  held  at  Harrisburg,  Pa.,  by 
the  local  and  central  Pennsylvania  manufacturing  interests.  It 
was  attended  by  representatives  of  banking  institutions,  steam- 
ship companies,  etc.    The  discussion  was  valuable  to  all  present. 

10.  The  Richmond  Latin  American  Trade  Conference.  At 
Richmond,  V^.,  September  29-30,  1914,  an  important  conference 
was  held  for  the  purpose  of  considering  the  possibilities  of  trade 
extension  with  the  countries  of  Central  and  South  America.  The 
conference  was  an  interesting  one  and  was  addressed  by  promi- 
nent experts  in  the  Latin  American  field. 

11.  Lnternational  Trade  Conference.  This  was  held  in  New 
York,  December  7,  1915,  under  the  auspices  of  the  National  Asso- 
ciation of  Manufacturers.  Consideration  was  given  to  many  im- 
portant topics  relating  to  foreign  trade. 


346  EXPORTING  TO  LATIN  AMERICA 

12.  Third  National  Foreign  Trade  Convention,  1916.  This  con- 
vention was  held  in  New  Orleans,  La.,  January  27-29,  1916. 
It  was  called  by  the  National  Foreign  Trade  Council,  and  was 
well  attended.  Many  important  phases  of  foreign  trade  were  dis- 
cussed by  experts.  A  printed  copy  of  the  proceedings  may  be 
obtained  from  the  Secretary  of  the  National  Foreign  Trade  Coun- 
cil, Mr.  Robert  H.  Patchin,  64  Stone  Street,  New  York,  N.  Y. 

13.  Other  Meetings.  Numerous  other  meetings  have  been  held 
throughout  the  United  States.  Such  conferences  as  the  Southern 
Commercial  Congress,  the  Trans-Mississippi  Congress,  etc.,  have 
been  marked  by  the  presence  of  distinguished  authorities  on  Latin 
American  affairs  who  have  sought  to  arouse  a  greater  interest 
in  the  general  topic  of  trade  relations  and  who  have  emphasized 
the  importance  of  reciprocal  business  with  the  southern  republics. 


CHAPTER  XXVI 

HOW  BUSINESS  ORGANIZATIONS  MAY  AID  MANUFACTURERS  IN 
LATIN  AMERICAN   TRADE   EXTENSION 

Introduction. — The  work  of  business  organizations  in  Latin 
American  trade  extension  is  becoming  increasingly  important.  In 
almost  every  city  there  are  Chambers  of  Commerce,  Business  Men's 
Leagues,  Manufacturers'  Associations,  etc.,  which  are  either  al- 
ready giving  practical  aid  to  their  members  or  have  under  con- 
sideration plans  to  further  the  growth  of  business  relations  with 
the  southern  republics.  In  order  to  render  the  most  practical 
service,  business  organizations  must  standardize  their  efforts.  As 
a  first  step  a  trained,  experienced  man  should  be  employed  to 
direct  foreign  trade  development.  The  value  of  a  business  or- 
ganization to  its  members  will  be  in  direct  ratio  to  the  practical 
service  it  renders.  Following  is  a  brief  outline  of  the  principal 
ways  in  which  commercial  organizations  can  assist  their  members. 

Bureau  of  Translations. — There  should  be  maintained  a  Bureau 
of  Translations.  Particular  attention  should  be  paid  to  technical 
translations  and  the  preparation  of  catalogs  suitable  for  Latin 
America. 

Branch  Office  of  the  Bureau  of  Foreign  and  Domestic  Commerce. 
— Members  should  be  advised  of  the  work  of  this  important  Bu- 
reau. They  should  be  shown  how  to  take  advantage  of  the  serv- 
ice in  its  many  phases  as  outlined  in  Chapter  XXIII.  Arrange- 
ments should  be  made  with  the  Bureau  of  Foreign  and  Domestic 
Commerce  to  serve  as  the  branch  office  of  the  Bureau  in  cities 
where  it  maintains  no  agent.  By  this  means  members  can  more 
easily  obtain  the  fullest  benefit  of  the  government  service. 

Bureau  of  Employment  for  Foreign  Trade  Positions. — A  bureau 
should  be  established  with  which  applicants  for  positions  as  trav- 
elers or  local  representatives  abroad,  or  as  employees  in  foreign 
departments,  may  file  references.  Members  should  be  informed 
of  all  applicants  found  reliable  and  should  be  requested  to  send 

347 


348  EXPORTING  TO  LATIN  AMERICA 

to  the  Bureau  applications  which  they  receive  but  whicli  cannot 
be  utilized  by  them. 

Assistance  in  Establishing  Export  House  Connections. — Mem- 
bers should  be  informed  regarding  the  possibilities  of  export  house 
representation.  The  association  should  lend  its  assistance  in  mak- 
ing the  most  advantageous  arrangements  for  foreign  sales  by  this 
means. 

Cooperative  Efforts  of  Groups  of  Members. — The  services  of 
commercial  associations  should  be  placed  at  tlie  disposal  of  mem- 
bers in  allied  lines  of  products  who  wish  to  appoint  joint  repre- 
sentatives for  a  group.  An  intelligent  secretary  can  be  of  in- 
valuable aid  in  suggesting  plans. 

Assistance  in  Making  C.I.F.  Quotations. — A  very  practical  serv- 
ice would  be  that  of  helping  the  members  to  make  proper  quota- 
tions, including  the  cost  of  insurance  and  freight.  To  those 
members  especially  who  are  just  establishing  trade  connections 
such  aid  would  be  invaluable. 

Suggestions  for  Forwarding  Shipments. — Members  should  be 
given  the  necessary  information  to  forward  shipments  properly 
and  should  be  supplied  with  the  names  and  addresses  of  forward- 
ing agents  in  the  principal  ports. 

Files  of  Latin  American  Government  Journals. — A  file  of  official 
Latin  American  government  journals  should  be  kept.  Members 
should  be  advised  of  opportunities  referred  to  therein  and  of  bids 
advertised   for  government   supplies. 

File  of  Latin  American  Publications  in  General. — There  should 
be  maintained  complete  files  of  all  publications  relating  to  Latin 
America,  with  particular  emphasis  on  those  containing  new  busi- 
ness opportunities.  Such  files  should  include  all  export,  trade,  and 
technical  journals,  magazines  featuring  Latin  America,  news- 
papers, and  magazines  published  in  Latin  America. 

Bureau  for  Adjustment  of  Claims. — A  bureau  for  the  adjust- 
ment of  cUiims  and  disputes  and  to  make  collections  should  be 
established. 

Furnishing  Banking  Information. — Members  should  be  supplied 
with  information  regarding  the  best  methods  of  financing  for- 
eign transactions,  the  handling  of  drafts,  the  making  of  foreign 
collections,  and  the  fiiiancial  conditions  in  general  in  Latin 
America. 


HOW  BUSINESS  ORGANIZATIONS  MAY  AID      349 

Practical  Advice  Regarding  Foreign  Trade  Problems. — The 
secretary  or  person  in  charge  of  the  foreign  trade  division  of  a 
business  organization  should  be  in  a  position  to  advise  members 
regarding  the  solution  of  problems  constantly  arising  in  the  de- 
velopment of  foreign  trade.  This  should  include  correspondence, 
filling  orders,  packing,  marking,  preparation  of  shipping  docu- 
ments, invoices,  consular  invoices,  marine  insurance,  obtaining 
ocean  or  freight  rates,  forwarding  banking  documents,  drafts, 
foreign  exchange,  custom  house  regulations,  tariffs,  traveling  sales- 
men, taxes,  advertising,  etc. 

Weekly  or  Monthly  Bulletin. — Members  should  be  supplied  with 
a  well-edited  bulletin  containing  information  regarding  Latin 
American  trade,  reports  of  trade  opportunities  compiled  from 
various  sources,  including  those  appearing  in  the  Commerce 
Reports. 

The  bulletin  should  be  modeled  after  those  supplied  by  the  Na- 
tional Association  of  Commerce,  the  American  Manufacturers' 
Export  Association,  the  Philadelphia  Commercial  Museum,  etc. 

Foreign  Patents,  Trade-marks  and  Copyrights. — The  Associa- 
tion should  furnish  information  regarding  patent  and  trade-mark 
laws  in  foreign  countries  and  should  be  in  a  position  to  supply 
the  names  of  reliable  agents  or  lawyers  who  can  properly  attend 
to  the  registration  of  trade-marks. 

Coordination  of  All  Export  Efforts. — The  efforts  of  business  or- 
ganizations should  be  directed  toward  the  coordination  of  all 
movements  for  the  furtherance  of  American  export  trade.  This 
should  include  work  of  the  United  States  Government,  organi- 
zations formed  for  the  purpose  of  fostering  American  foreign  com- 
merce, commercial  organizations  generally,  the  Pan- American 
Union,  foreign  trade  and  technical  journals,  etc.  Strong  efforts 
should  be  made  to  have  official  recognition  accorded  intelligent 
efforts  to  further  trade,  and  to  coordinate  through  governmental 
offices  the  data  acquired  by  all  engaged  in  export  trade  develop- 
ment. 

Visitors  from  Latin  America. — Commercial  organizations  should 
cooperate  with  the  proper  persons  in  Latin  American  countries 
and  with  their  members  to  obtain  advance  information  of  the 
visits  of  Latin  American  merchants. 

Entertainment  of  Visitors. — Visitors  from  Latin  America;  par- 


350  EXPORTING  TO  LATIN  AMERICA 

ticularly  those  interested  in  making  purchases,  should  be  prop- 
erly entertained.  Interpreters  should  be  supplied  free  of  charge 
and  there  should  be  efforts  to  make  their  stay  in  the  community 
agreeable. 

Organization  of  Groups  of  Latin  Americans. — Whenever  possi- 
ble, arrangements  should  be  made  for  the  establishment  of  social 
organizations  of  native  Latin  Americans.  Such  groups  can  most 
effectively  entertain  Spanish-speaking  guests  by  affording  them 
opportunities  for  conversation  in  their  own  language. 

Lectures  Regarding  Latin  America. — Valuable  work  in  behalf 
of  Latin  America  would  be  the  arrangement  for  lectures  to  be 
given  by  authorities  in  Latin  American  history,  literature,  etc. 

Prizes  to  Stimulate  Interest  in  Latin  America. — An  excellent 
means  of  arousing  interest  in  Latin  America  is  by  the  awarding 
of  prizes  to  students  in  schools  or  universities  for  essays  on  topics 
relating  to  Latin  America  or  for  excellence  in  the  study  of  Span- 
ish or  Portuguese.  Such  prizes  should  be  offered  by  business 
organizations. 

Payment  of  Visitors'  Expenses. — In  connection  with  the  ex- 
ploitation of  the  commerce  of  a  city,  merchants  from  Latin  Amer- 
ica should  be  informed  by  printed  matter  that  their  fare  to  the 
city  will  be  refunded  upon  the  purchase  of  a  certain  amount  of 
merchandise. 

Cooperation  with.  Other  Export  Organizations. — No  opportunity 
should  be  lost  to  cooperate  in  every  possible  way  with  all  other 
organizations  interested  in  foreign  trade  development.  There 
should  be  an  exchange  of  bulletins — and  of  all  information  gen- 
erally which  would  be  advantageous  to  the  members  of  the  sev- 
eral organizations. 

Cooperation  with  Business  Organizations  in  Latin  America. — 
The  most  active  cooperation  should  exist  between  the  local  business 
organizations  and  Chambers  of  Commerce  and  trade  bodies  in 
Latin  American  countries.  x\ll  matters  of  mutual  interest  should 
be  fostered,  and  the  furthering  of  reciprocal  advantages  should  be 
sought.  This  should  especially  concern  itself  with  obtaining  mar- 
kets for  Latin  American  products. 

Foreign  Trade  Luncheons. — liuncheons  should  be  held  period- 
ically at  which  the  s])eakers  should  be  men  versed  in  definite 
phasas  of  the  export  business.    Such  meetings  should  be  addressed 


HOW  BUSINESS  OEGANIZATIONS  MAY  AID      351 

by  visiting  government  officials,  consular  officers,  commercial 
attaches,  etc. 

To  Foster  Foreign  Trade  Education. — Proper  instruction  for 
foreign  trade  and  the  establishment  of  schools  for  teaching  young 
men  this  branch  of  commerce  should  be  encouraged.  The  addi- 
tion of  courses  of  study  by  established  schools  should  also  be 
urged  and  "continuation"  courses  should  be  advocated. 

Distribution  of  Literature  Regarding  a  City. — Illustrated  book- 
lets, pamphlets,  and  well-written  letters  setting  forth  the  advan- 
tages of  buying  in  a  particular  market  should  be  circulated  in 
Latin  America.  Cards  should  be  inclosed  upon  which  merchants 
may  state  in  what  article  they  are  interested,  and  these  requests 
should  then  be  communicated  to  members.  Members  who  circu- 
late catalogs  and  printed  matter  in  the  Latin  American  countries 
should  be  induced  to  include  pamphlets  containing  a  description 
of  their  city  and  its  advantages. 

Local  Offices  in  Latin  American  Capitals. — Efforts  should  be 
made  to  establish  branch  offices  in  the  principal  capitals.  The 
expense  of  maintaining  these  offices  should  be  borne  either  by 
members  interested  in  obtaining  trade  there  or  by  an  association 
whose  members  generally  would  be  benefited  by  personal  repre- 
sentation. 

Delegates  to  Foreign  Countries. — Advantage  should  be  taken  of 
the  visits  of  members  or  their  representatives  to  foreign  countries 
in  order  that  they  may  be  commissioned  to  represent  the  local 
body.  Much  good  publicity  for  the  market  may  be  obtained  by 
the  visits  of  such  representatives  to  Latin  American  countries. 

Exchange  of  Students  and  Apprentices. — Every  effort  should  be 
made  to  arrange  for  the  entry  into  local  schools  of  Latin  Ameri- 
can students  who  wish  to  learn  business  methods  in  the  United 
States.  Similar  efforts  for  the  sending  of  young  Americans  to 
Latin  America  should  be  encouraged. 

Subsidies  or  Scholarships  to  Young  Men. — To  encourage  young 
men  to  adopt  foreign  trade  careers,  business  organizations  should 
arrange  traveling  scholarships  or  subsidies  to  cover  the  expense  of 
such  students  while  in  Latin  America  for  the  purpose  of  learn- 
ing the  business  methods,  customs,  and  language  of  the  people. 
The  means  of  selecting  such  delegates  would  be  by  competitive 
examinations  or  other  tests  agreed  upon. 


353  EXPORTING  TO  LATIN  AMERICA 

The  Dissemination  of  Reliable  News. — One  of  the  concrete  ways 
in  which  business  orgiuiizations  can  effectively  serve  American 
commerce  is  by  obtaining  the  publication  in  Latin  American  news- 
papers of  news  items  that  would  help  to  create  a  better  under- 
standing of  the  United  States.  In  these  newspapers  there  is  but 
little  reliable  news  concerning  this  country,  and  most  of  the  items 
published  are  to  our  disadvantage.  This  service  affords  a  great 
opportunity  for  fine  work  and  is  one  in  which  the  intelligent  secre- 
tary can  render  valuable  aid. 

Lists  of  Prospective  Buyers, — Carefully  compiled  lists  of  names 
of  prospective  buyers  of  American  manufactures  should  be  sup- 
plied to  members. 

Reports  on  Sales  Possibilities. — Upon  application,  reports  relat- 
ing to  the  sale  of  specific  products  or  manufactures  should  be 
furnished.  When  necessary  the  reports  should  be  specially  com- 
piled. 

American  Business  Organizations  in  Latin  American  Countries. 
— Strong  efforts  should  be  made  to  encourage  the  organization 
of  American  Chambers  of  Commerce  in  the  principal  Latin  Ameri- 
can cities.  Such  organizations  should  be  composed  of  American 
residents  of  those  countries  and  of  American  commercial  firms 
engaged  in  business  there.  The  object  of  such  associations 
should  be: 

To  promote  the  interest  of  American  houses  in  every  possible 
way.  . 

To  encourage  the  importation  of  American  goods  by  all  forms 
of  propaganda. 

To  advise  American  correspondents  of  business  opportunities. 

To  aid  American  traveling  men  or  the  local  agents  of  American 
firms  in  the  location  of  buyers. 

To  assist  in  obtaining  reliable  data,  trade  lists,  etc. 

To  keep  members  informed  of  changing  trade  conditions  and 
opportunities. 

To  establish,  if  practicable,  a  display  of  samples  of  American 
manufactures. 

To  assist  American  houses  in  obtaining  accurate  translations 
of  general  or  technical  catalogs  and  to  help  in  the  revision  of 
catalogs  already  in  use,  by  obtaining  the  exact  terms  and  mean- 
ings of  difficult  words  and  phrases. 


I 


HOW  BUSINESS  ORGANIZATIONS  MAY  AID      353 

To  help  obtain  local  or  general  agents  and  to  investigate  their 
references. 

To  submit  confidential  reports  on  dealers. 

To  intervene  in  the  adjustment  of  claims. 

To  hold  arbitrations  and  to  settle  disputes. 

To  assist  in  collection  of  accounts. 

To  cooperate  with  American  Consuls  by  performing  services 
which  the  latter  cannot  undertake. 

To  arrange  the  exchange  of  students  and  apprentices  who  wish, 
on  the  one  hand,  to  learn  American  business  ways  and  customs, 
and  on  the  other  hand,  to  study  the  methods  of  Latin  American 
houses. 

To  assist  in  the  dissemination  of  reliable  information  and  in- 
teresting facts  regarding  the  United  States,  its  policies,  and  its 
people,  and  to  secure  the  publication  of  such  articles  by  the  best 
newspapers  and  journals. 

Subjects  Requiring  Cobperation. — In  the  analysis  of  trade  rela- 
tions with  Latin  America  it  will  be  found  that  certain  conditions 
exist  which  can  be  adjusted,  provided  a  proper  effort  is  made. 
To  this  end  the  closest  possible  cooperation  of  all  the  Latin  Ameri- 
can republics  with  the  United  States  is  desirable.  Such  cooperation 
may  take  the  form  of  diplomatic  proceedings  based  upon  repre- 
sentations of  individual  commercial  organizations  in  the  various 
countries,  or  upon  the  work  of  an  International  Chamber  of 
Commerce. 

Questions  to  Be  Agitated. — Some  of  the  questions  which  should 
be  agitated  by  individual  Chambers  of  Commerce  and  commercial 
organizations,  the  National  Chamber  of  Commerce,  and  the  Na- 
tional Foreign  Trade  Council  are  the  following: 

1.  The  establishment  of  an  International  American  Chamber 
of  Commerce.  Such  a  chamber  should  have  permanent  quarters 
in  the  principal  Latin  American  cities,  and  an  active  executive 
committee  in  the  principal  cities  of  the  United  States,  with 
branches  cooperating  through  local  chambers  of  commerce. 

2.  To  standardize  classifications,  descriptions,  measures  of  value 
and  quantity  for  the  purpose  of  more  intelligible  customs  clear- 
ance. 

3.  To  arrange  the  necessary  alteration  of  Latin  American  laws 
relating  to  commercial  representatives. 


354  EXPORTING  TO  LATIN  AMERICA 

4.  To  overcome  variations  in  commercial  laws  that  are  mutually 
disadvantageous. 

5.  To  supply  the  necessary  machinery  for  the  purpose  of  arbi- 
trating commercial  disputes. 

6.  To  provide  for  inter-American  governmental  bureaus  in 
needed  departments,  including  agriculture,  animal  industry,  for- 
estry, geology,  hydrography,  etc. 

7.  To  provide  for  the  enactment  of  laws  simplifying  the  ex- 
change of  products.  This  would  concern  itself  with  regulations 
for  making  use  of  warehouse  receipts  and  other  documents  needed 
in  trade.  To  agitate  an  improved  postal  service  between  the  United 
States  and  the  Latin  American  republics  and  to  secure  the  adop- 
tion of  two-cent  postage.  A  further  benefit  would  be  that  of  the 
C.O.D.  system  to  the  parcel  post  with  Latin  America.  To  encour- 
age the  mercantile  marine  by  providing  for  the  reduction  of  post 
charges. 

8.  To  advocate  the  creation  of  free  ports,  enabling  the  carrying 
of  stocks  in  the  various  Latin  American  republics,  subject  to  the 
payment  of  duties  when  importations  are  arranged. 

9.  To  overcome  the  drawbacks  relative  to  registrations  of  trade- 
marks and  copyrights,  and  more  fully  to  protect  manufacturers 
against  registry  of  them  by  unprincipled  individuals. 

10.  To  obtain  the  cooperation  of  men  of  learning  in  the  uni- 
versities of  the  United  States  and  those  of  Latin  America  and  to 
provide  for  a  similar  exchange  of  students. 

11.  To  agitate  combinations  of  manufacturers  which  would  be 
lawful. 

12.  To  agitate  the  training  of  experts  in  the  handling  of  for- 
eign trade  and  in  the  training  of  salesmen  for  that  work. 

American  Delegations  to  Latin  American  Countries. — Visits  of 
delegations  of  business  men  to  Latin  American  countries  are  en- 
couraged by  many  organizations.  While  such  activity  is  laudable, 
the  results  to  be  derived  therefrom  are  insignificant  in  compari- 
son with  the  benefits  which  result  from  the  continuous  work  of 
resident  or  traveling  agents  with  samples.  Far  greater  results 
would  be  obtained  by  the  appropriation  of  funds  to  arrange  tours 
of  Latin  American  merchants  to  the  principal  manufacturing  and 
commercial  centers  of  the  United  States.  The  money  needed  for 
American  trade  tours  of  Latin  Americans  is  usually  misspent,  as 


HOW  BUSINESS  ORGANIZATIONS  MAY  AID      355 

in  many  instances  the  delegations  include  not  only  business  men 
but  also  individuals  bent  on  sightseeing.  The  time  is  so  much 
taken  up  with  affairs  in  honor  of  the  visitors  that  the  actual  com- 
mercial conditions  cannot  be  studied  in  the  short  time  remaining. 
While  the  practice  of  visits  to  Latin  America  should  be  encour- 
aged, far  greater  results  would  be  obtained  were  these  made  by 
individual  manufacturers  or  very  small  groups  who  should  come 
unheralded  in  the  newspapers,  that  they  might  study  at  first  hand 
actual  commercial  conditions. 

When  visits  of  commercial  delegations  to  Latin  American  coun- 
tries are  planned,  notice  thereof  should  invariably  be  given  Ameri- 
can Consuls  that  they  may  make  proper  arrangements  for  their 
reception. 

An  Example  of  Commercial  Organization  "Work. — As  an  exam- 
ple of  the  cooperative  work  of  a  business  organization  with  manu- 
facturers in  the  development  of  foreign  trade,  may  be  cited  the 
Export  Managers'  Bureau  of  the  Business  Men's  League  of  St. 
Louis.  This  was  organized  March  19,  1915,  and  the  meetings  of 
the  Bureau,  which  are  attended  largely  by  men  who  direct  the 
details  of  foreign  commerce,  include  the  discussion  of  the  problems 
confronting  export  managers,  the  study  of  conditions  affecting 
trade  between  St.  Louis  and  foreign  countries,  and  a  general  in- 
terchange of  ideas.  Consular  officers,  commercial  attaches,  and 
experts  in  foreign  trade  are  invited  to  address  the  meetings,  the 
purpose  being  more  thoroughly  to  equip  employees  placed  in  charge 
of  export  departments  by  various  manufacturers. 

An  Example  of  Cooperative  Effort. — Another  example  of  co- 
operative effort  which  is  applicable  to  the  Latin  American  market 
is  that  of  the  Illinois  Manufacturers'  Association.  This  organi- 
zation arranged  with  an  experienced  traveler  for  the  establishment 
of  selling  agencies  and  showrooms  in  Petrograd,  Russia.  Because 
of  the  number  of  members  who  agreed  to  underwrite  the  plan,  the 
cost  of  initial  efforts  to  win  the  Russian  market  was  materially 
reduced. 

The  Valne  of  Expositions. — During  the  past  decade  a  number 
of  very  important  expositions  have  been  held  in  various  parts 
of  Latin  America,  which  have  been  of  considerable  value  in  stimu- 
lating trade  with  the  United  States.  Of  especial  importance  have 
been  those  in  which  agricultural  machinery  and  implements  were 


35G  EXPORTING  TO  LATIN  AMERICA 

displayed.  Trade  expositions  will  have  an  increasingly  impor- 
tant part  in  the  development  of  business  between  the  United  States 
and  Latin  America.  They  can  be  made  most  effective  by  permit- 
ting the  display  of  machinery  and  implements  which  require 
demonstration  in  order  that  the  ultimate  consumer  may  have  an 
opportunity  of  seeing  their  actual  workings.  Business  organiza- 
tions in  the  United  States  should  keep  in  close  touch  with  the 
management  of  such  expositions  and  seek  to  supply  their  mem- 
bers with  information  relative  to  cost  of  space,  charges  for 
entry,  etc. 

Cooperative  Expositions  by  Manufacturers. — In  this  connection 
reference  should  be  made  to  cooperative  exhibitions  of  American 
manufacturers.  As  organizations  already  exist  in  which  the  manu- 
facturers of  allied  lines  are  coordinated,  much  may  be  done  in  co- 
operative work  for  the  benefit  of  all  the  members  of  a  particular 
trade.  The  chief  feature  of  such  work  should  be  the  exhibition  of 
the  products  contributed  by  certain  members  who  are  particularly 
interested  in  establishing  a  foreign  business.  Exhibitions  could 
be  carried  from  one  city  to  another  and  opportunity  could  be  given 
for  inspection  by  prospective  buyers.  While  immediate  results 
could  not  be  expected,  such  an  exhibition  Avould  prove  advan- 
tageous. 

The  Commercial  Museum  of  Cuba. — Several  Latin  American 
governments  have  already  established  expositions  and  commercial 
museums.  For  instance,  the  republic  of  Cuba,  through  its  De- 
partment of  State,  has  founded  in  conjunction  with  the  Bureau 
of  I]iformation,  a  Commercial  IMuseum.  Manufacturers  and  mer- 
chants may  make  a  comprehensive  study  of  foreign  goods  and 
prices.  Catalogs  and  samples  of  many  articles  are  on  file.  Manu- 
facturers who  wish  information  may  obtain  it  from  the  Cuban 
Consul  General,  S2  Beaver  Street,  New  York. 

A  Brazilian  Commercial  Museum,. — The  Museo  Commercial,  the 
great  museum  of  Rio  do  Janeiro,  is  administered  by  the  Brazilian 
Federal  Department  of  Agriculture,  Commerce,  and  Industry. 
This  government  organization  maintains  a  spacious  building,  cen- 
trally located,  of  three  floors,  and  desires  to  make  a  permanent 
exliibition  of  American  products.  The  exhibition  of  samples  and 
models  is  made  entirely  free  of  charge,  the  only  expense  incurred 
by  exhibitors  being  freight  and  handling.    Catalogs  and  price  lists 


HOW  BUSINESS  ORGANIZATIONS  MAY  AID      357 

may  be  sent  for  free  distribution.  Details  relative  to  the  museum 
and  exhibitions  therein  are  supplied  upon  request. 

Cooperating  with  Foreign  Bureaus. — There  are  being  opened  in 
many  of  the  principal  Latin  American  cities,  commercial  bureaus 
with  which  business  organizations  and  American  manufacturers 
may  cooperate  in  the  introduction  and  sale  of  American  products. 
As  an  example  may  be  cited  an  institution  called  the  Oficinas  de 
Informacion  Comercial  at  Callao,  Peru.  Its  purpose,  in  part,  is 
to  bring  together  American  sellers  and  Peruvian  buyers  by  sup- 
plying information  relative  to  import  duties,  commercial  regula- 
tions, trade-marks,  etc. 

Other  organizations  of  a  similar  nature  are  being  established 
in  many  places  for  the  purpose  of  exhibiting  American  manu- 
factured articles.  Manufacturers,  however,  before  making  definite 
arrangements  with  such  enterprises  should  ascertain,  through  the 
Bureau  of  Foreign  and  Domestic  Commerce  or  its  branches, 
whether  they  are  legitimate.  If  the  department  is  not  in  position 
to  advise  immediately,  the  information  can  be  obtained  through 
the  Consul  in  the  city  where  the  proposed  exhibition  is  to  be 
held. 

Courses  of  Reading  for  Secretaries. — The  secretary  of  a  com- 
mercial organization  should  be  thorough^  informed  regarding 
the  development  of  export  business  and  of  legislation  relative 
thereto.  A  course  of  reading  will  be  found  of  material  aid.  This 
should  include  the  leading  Export  and  Trade  Journals,  the  pub- 
lications of  the  Department  of  Commerce  and  Labor,  including  the 
Commerce  Repotis,  books  relating  to  the  individual  countries,  etc. 
Suggestions  for  such  a  course  will  be  found  on  page  4:74:. 

A  Suggested  Course  of  Instruction  in  Export  Trade. — One  of  the 
valuable  services  which  can  be  rendered  by  a  commercial  organiza- 
tion to  its  members  is  a  course  of  lectures  which  deal  with  thor- 
oughly practical  phases  of  the  export  business.  Some  of  the  prin- 
cipal business  organizations  have  already  arranged  for  stated  meet- 
ings of  the  export  managers  of  their  members  who  exchange  views 
on  foreign  trade.  Wliile  this  is  valuable,  a  plan  that  will  be  pro- 
ductive of  much  practical  benefit  is  that  of  a  series  of  meetings 
addressed  by  authorities  on  the  various  export  problems.  The 
address  or  lecture  may  be  illustrated  with  stereopticon  views  and 
informal  discussions  should  follow,  with  questions  from  those  pres- 


358  EXPORTING  TO  LATIN  AMEEICA 

ent  regarding  personal  problems.    A  list  of  possible  topics  for  such 
a  course  is  the  following: 

LIST  OF  TOPICS  FOR  A   SERIES   OF  LECTURES  BY 
EXPERTS  IN  LATIN  AMERICAN  TRADE 

Economics  of  American  Foreign  Trade 

1.  The  nature  and  purpose  of  foreign  trade. 

2.  The  development  of  commerce  between  the  United  States  and 

other  parts  of  the  world. 

3.  Influence  of  competition — foreign  and  domestic. 

4.  Transportation    and   its   relation   to   the  growth   of  American 

commerce. 
6.    The  most  desirable  markets,  present  opportunities  and  future 
possibilities. 

Geography  as  Related  to  Trade 

1.  A  study  of  the  natural  resources  of  prospective  markets,  of 

their  inhabitants  and  economic  conditions. 

2.  The  great  trading  centers  of  the  world,  the  routes  of  trade  and 

travel. 

3.  The  direct  and  indirect  effects  of  the  Panama  Canal  on  Ameri- 

can and  world  trade. 

4.  The  influence  of  geographical  conditions  generally  on  industry 

and  commerce. 

How  TO  Study  the  Problem  of  Obtaining  Foreign  Trade 

1.  Analysis  of  European  methods. 

2.  Analysis  of  American  success  in  export  trade. 

3.  The  means  of  obtaining  information  regarding  export  trade. 

4.  Education  and  training  necessary. 

Methods  of  Building  Export  Business 

1.  Export  commission  bouses  and  export  agents. 

2.  Direct  sales  to  foreign  countries  by: 

(a)  Local  and  general  agents. 

(b)  Traveling  salesmen. 

(c)  Correspondence. 

(d)  Advertising. 

d.    Organization  of  an  export  department  and  duties  of  a  manager. 


HOW  BUSINESS  OEGANIZATIONS  MAY  AID      359 

Outline  of  Latin  American  Markets  from  the  Commercial  Stand- 
point 

1.  Mexico,  Cuba,  West  Indies. 

2.  Central  America  and  Panama. 

3.  West  coast  South  America. 

4.  East  coast  South  America. 

Business  Methods  and  Customs  of  Latin  America 

1.  Analysis  of  the  population. 

2.  The  merchants;  foreign  and  native. 

3.  The  business   policies   and  character   of  Latin   American   im- 

porters. 

4.  Stores  and  sales  methods. 

Traveling  and  Local  Salesmen 

1.  Qualifications  of  representatives. 

2.  Methods  of  obtaining  or  developing  salesmen. 

3.  Arrangement  of  territory. 

4.  The  problem  of  samples,  travelers'  licenses,  etc. 

5.  Directing  salesmen,  remittances,  and  reports  exacted  of  trav- 

elers. 

6.  Suggestions  for  proper  direction  of  Latin  American  travelers. 

Correspondence  with  Latin  America 

1.  The  general  character  of  the  correspondence. 

2.  The  construction  of  sales  letters  and  the  follow-up  system. 

3.  Problems  of  Latin  American  correspondence,  short  paid  post- 

age, etc. 

4.  Introducing  Latin  American  viewpoint  and  personality. 

5.  The  filing  of  letters,  card  index  systems,  abbreviations. 

Advertising  in  Latin  America 

1.  The  use  of  catalogs,  price  lists,  and  circulars, 

2.  The  need  of  a  well-planned  campaign  and  coordination  of  all 

sales  efforts. 

3.  The  use  of  advertising  helps  and  novelties,  and  their  problems. 

4.  Magazines,  export  papers,  and  newspapers  in  Latin  America: 

(a)  American  export  journals. 

(b)  Technical  and  trade  papers. 

(c)  Local  newspapers  and  magazines. 

(d)  The  preparation  of  advertisements,  etc, 


360  EXPORTING  TO  LATIN  AMERICA 

Proper  Packing  for  Latin  America 

1.  Packing,  as  related  to  transportation  and  local  conditions. 

2.  How  to  determine  wliat  packing  to  be  used. 

3.  Analysis  of  port  conditions. 

4.  How  to  insure  satisfactory  packing. 

Freight  Forwarding  and  Forwarding  Agents 

1.  Practical  requirements  in  the  forwarding  of  shipments. 

2.  The  work  of  forwarding   agents. 

3.  Analysis  of  quotations,  c.i.f.,  f.o.b.,  etc. 

4.  The  cost  and  economies  of  forwarding. 

Ocean  Traffic  and  Shipping 

1.  The  handling  of  freight  at  seaports. 

2.  The  loading  and  unloading  of  vessels. 

3.  The  basis  of  ocean  freight  rates,  shipping  routes,  etc. 

4.  The  American  merchant  marine. 

5.  Laws  affecting  shipping. 

The  Preparation  of  Documents 

1.  The  importance  of  invoices. 

2.  Consular  invoices  and  requirements. 

3.  Railroad  and  ocean  bills  of  lading. 

4.  Other  documents  required  in  foreign  shipping. 

5.  The  forwarding  of  documents. 

Credits  in  Latin  America 

1.  General  credit  conditions  in  the  Latin  American  countries. 

2.  How  to  obtain  information. 

3.  Collecting  open  accounts. 

4.  Bank  credits;  drafts,  with  and  without  documents. 

5.  Collection  methods  and  charges. 

Banks  and  Financial  Conditions  in  Latin  America 

1.  General  financial  conditions  in  Latin  American  countries. 

2.  Why  American  banks  are  needed. 

3.  Banking  methods  in  general. 

4.  The  effect  of  the  Federal  Reserve  Act  in  relation  to  the  redis- 

counting  of  foreign  bills. 

5.  Opportunities  for  and  effect  of  American  investments. 


HOW  BUSINESS  OEGANIZATIONS  MAY  AID      361 

Foreign  Tariffs  axd  Taxes 

1.  The  theory  of  tariffs  in  Latin  America. 

2.  Effect  of  tariffs  on  importations. 

3.  European  and  American  competition  in  relation  to  tariffs. 

4.  Overcoming  tariff  law  restrictions. 

5.  Custom  house  regulations. 

Marine  Insurance 

1.  A  study  of  its  principles. 

2.  The  various  kinds  of  marine  insurance. 

3.  The  adjustment  of  losses. 

4.  Need  for  other  than  marine  insurance. 

Governmental  Assistance  to  American  Exporters 

1.  The  work  of  the  Bureau  of  Foreign  and  Domestic  Commerce. 

2.  The  Consular  Service. 

3.  Commercial  attaches,  special  agents,  etc. 

4.  The  publications  of  the  Bureau. 

5.  The  work  of  branch   offices. 

Technical  Training  for  Eoreign  Trade 

1.  Need  for  training. 

2.  The  best  methods  of  foreign  trade  instruction. 

3.  The  training  of  employees  for  export  departments. 

4.  Obtaining  and  training  salesmen  for  Latin  America. 

History  op  the  Latin  American  Republics 

1.  Political  history  of  grouped  countries. 

2.  Political  history  of  individual  countries. 

3.  Economic  financial-industrial  history   of  individual   countries. 

4.  Immigration,  naturalization,  etc". 

Socl^l  Development  and  Conditions 

1.  Business  and  social  customs. 

2.  Celebration  of  national,  civic,  and  religious  holidays. 

3.  Relation  of  Church  and  State. 


CHAPTER  XXVII 

THE    OPPORTUNITIES    FOR    YOUXG    MEN    IN    LATIN    AMERICA. 
C0M3HERCIAL  EDUCATION  FOR  FOREIGN  TRADE 

Introduction. — The  influence  of  European  residents  in  the  Latin 
American  republics  upon  the  development  of  commerce  with  their 
respective  coimtries  has  already  been  pointed  out. 

Influence  of  Resident  Americans. — The  settlement  of  Americans 
in  the  southern  republics  should  be  encouraged  for  the  same 
general  reasons  as  those  shown  in  Chapter  III.  The  presence  of 
Americans  is  reflected  not  only  in  the  demand  on  local  merchants 
for  American  products  but  in  the  use  of  American  machinery, 
appliances,  tools,  etc.  The  establishment  of  American  colonies 
brings  with  it  results  which  can  be  easily  seen  in  the  use  of  the 
mail  order  house  catalogs.  Purchases  made  from  the  latter  prac- 
tically force  the  importation  of  American-made  articles  by  local 
merchants,  in  order  to  obtain  the  valuable  patronage  of  Americans 
who  are  usually  in  good  financial  circumstances. 

Possible  Fields  of  Work. — The  opportunities  for  Americans, 
particularly  for  specialists  in  all  fields  of  work,  are  almost  unlim- 
ited because  of  the  fact  that  many  of  the  countries  are  extremely 
backward  and  in  others  the  conditions  are  still  primitive.  Among 
the  possible  fields  of  activity  for  Americans  are  the  professions, 
such  as  the  law,  medicine,  dentistry,  etc. ;  the  constructive  pro- 
fessions, such  as  engineering,  architecture,  civil  engineering,  etc. ; 
teaching,  business,  salesmanship,  etc.  In  the  latter  field  the  op- 
portunities are  particularly  good.  The  connection  of  American 
young  men  with  the  Latin  American  institutions  is  important  and 
should  be  encouraged,  as  it  usually  influences  the  purchase  of 
American  materials  and  machinery  for  use  in  construction 
work,  etc. 

Conditions  under  Which  Visits  Should  Be  Made. — Notwith- 
standing the  fact  that  young  men  with  specialized  knowledge  or 
iTiiining   can   find   excellent   opportunities   in   almost   all   of   the 

363 


COMMEECIAL  EDUCATION"  FOR  FOEEIGX  TRADE     363 

twenty  Latin  American  republics,  careful  analysis  of  the  situation 
should  be  made  before  making  tlie  journey.  Tliis  is  desirable  be- 
cause of  the  difficulty  of  properly  establishing  oneself,  unless  ar- 
rangements for  a  position  have  been  made  before  departure. 

The  opportunities  unquestionably  exist  but  capital  is  almost 
invariably  necessary.  Those  who  go  to  the  Latin  American  repub- 
lics should  have  ample  resources  on  which  to  live  for  at  least 
six  months  or  a  year  while  investigating,  and  not  leave  the  pos- 
sibility of  obtaining  employment  to  chance.  It  is  also  preferable 
that  those  who  go  should  have  qualified  themselves  by  a  course  of 
training  to  cope  with  the  problems  M'hich  will  arise. 

Interest  in  Foreign  Trade  Education. — N'ot  only  the  increasing 
demand  for  young  men  to  fill  responsible  positions  in  Latin  Amer- 
ica but  also  the  development  of  export  trade  in  general  has  aroused 
a  keen  interest  in  the  subject  of  foreign  trade  education.  The 
equipment  of  young  men  who  are  to  follow  the  export  business  as 
a  career  is  a  serious  problem.  For  the  most  part,  the  representa- 
tives of  American  manufacturers  who  have  gone  to  Latin  America 
have  had  only  such  training  as  they  have  acquired  by  study, 
reading,  and  observation.  Large  manufacturers  have  been  able  to 
give  a  limited  training  to  those  who  have  entered  their  foreign 
service,  but  this  has  been  largely  education  in  their  Ijusiuess. 

Commercial  Education  Abroad. — The  efficiency  of  Germans  en- 
gaged in  the  export  business,  and  particularly  as  rejDresentatives 
of  German  houses  in  Latin  American  trade,  has  often  been  referred 
to.  This  efficiency  is  not  accidental.  It  is  due  to  a  well-thought- 
out  plan  which  has  been  developed  through  cooperation  by  the 
government,  the  business  organizations,  and  the  merchants  them- 
selves. It  is  compulsory  for  a  manufacturer  to  grant  his  employees 
sufficient  time  to  attend  the  continuation  schools  where  certain 
essential  instruction  in  commerce  is  given.  Under  the  direction  of 
experts,  schools  for  teaching  young  men  foreign  trade  practice  have 
been  established. 

TJniversity  Courses  of  Study. — The  necessity  for  training  in  for- 
eign trade  has  become  so  essential  that  several  of  the  leading 
American  universities  have  established  courses  of  instruction.  The 
principles  underlying  commercial  practice  in  foreign  countries  are 
studied  and  all  the  phases  of  the  problem,  including  the  differ- 
ence between  export  and  import  trade,  are  considered.    Among  the 


364  EXPOETING  TO  LATIN  AMERICA 

universities  that  have  seriously  undertaken  this  instruction  are 
Harvard,  Yale,  Columbia,  and  New  York  University.  The  courses 
include  a  consideration  of  the  general  foreign  trade  situation,  geog- 
raphy, trade  organizations,  currency,  banking  and  exchange,  credits, 
capital  investment,  shipping,  transportation,  etc.  Other  institu- 
tions that  are  to  be  included  in  a  proposed  government  encouraged 
chain  of  schools  are  the  University  of  Chicago,  Tulane  University, 
the  University  of  Cincinnati  and  Charleston  College.  On  page  545 
is  given  a  list  of  universities  which  offer  certain  courses  in  con- 
nection with  Latin  American  topics. 

Other  Foreign  Tirade  Education  in  the  United  States. — Aside 
from  the  university  courses  already  referred  to,  educational  efforts 
in  foreign  trade  have  been  very  limited.  During  the  winter  of 
1914-1915  several  courses  of  lectures  on  the  general  subject  of 
export  trade  were  given  in  New  York  City.  One  course  was  un- 
der the  direction  of  John  Franklin  Crowell,  Ph.D.,  L.II.D.,  Edu- 
cational Department,  West  Side  Y.M.C.A.  Another  was  conducted 
under  the  direction  of  Prof.  Philip  B.  Kennedy  at  the  Wall  Street 
branch  of  the  Extramural  Division  of  New  York  University.  While 
Spanish  is  being  taught  to  an  increasingly  large  number  of  pupils 
in  many  of  the  high  schools  of  the  country,  instruction  in  other 
practical  phases  of  the  problem  has  rarely  been  attempted.  Sev- 
eral informal  groups  of  the  managers  of  export  departments  of 
business  houses  have  been  arranged  under  the  direction  of  com- 
mercial organizations  but  no  definite  course  of  instruction  has 
been  provided  for. 

The  Keynote  to  Foreign  Trade  Education. — The  keynote  to  for- 
eign trade  education  may  be  found  in  the  efforts  now  being  made 
to  increase  American  exports  by  coordination.  It  is  reasonable 
to  assume  that  they  will  soon  reach  a  point  of  the  highest  efficiency. 
Advantage  should  be  taken  of  these  efforts  to  further  the  cause  of 
foreign  trade  education.  Valuable  aid  and  suggestions  could  be  had 
of  the  United  States  Government,  particularly  the  officials  of  the 
Bureau  of  Foreign  and  Domestic  Commerce ;  of  the  Pan-American 
Bureau,  which  has  long  been  identified  with  educational  work  in 
behalf  of  Latin  America;  of  the  National  Foreign  Trade  Council, 
which  has  recently  circularized  manufacturers,  merchants,  and 
educators  to  obtain  a  better  idea  of  the  actual  necessities  for  for- 
eign trade  education;  of  business  organizations  such  as  the  Na- 


COMMERCIAL  EDUCATION  FOR  FOREIGN  TRADE     365 

tional  Association  of  Manufacturers,  the  Philadelphia  Commercial 
Museum,  the  Chicago  Association  of  Commerce  and  similar  bodies ; 
of  export  and  trade  journals;  and  of  manufacturers  who  have 
achieved  success  in  the  Latin  American  field. 

Cooperation  Between  Schools. — By  arranging  for  thorough  co- 
operation among  the  various  institutions  of  learning  which  under- 
take foreign  trade  education,  instruction  could  be  standardized  and 
the  visits  of  experts  to  various  cities  could  be  easily  arranged.  If 
the  instruction  were  planned  under  the  direction  of  a  Commission 
composed  of  the  representatives  of  all  the  interests  involved,  with 
perhaps  the  addition  of  the  United  States  Commissioner  of  Educa- 
tion, the  most  effective  results  would  follow. 

The  Organization  of  Continuation  Schools. — In  view  of  the  fact 
that  school  boards  throughout  the  LTnited  States  are  rapidly  in- 
creasing opportunities  for  technical  instruction,  there  should  be 
found  means  of  adopting,  to  some  extent  at  least,  the  idea  of  the 
German  continuation  schools  and  adapting  them  with  modifications 
to  meet  the  conditions  in  the  United  States.  Instruction  in  such 
schools  would  necessarily  be  of  a  primary  character  but  arrange- 
ments might  be  made  for  the  attendance  during  several  hours  each 
day  or  during  certain  days  of  the  week,  for  a  given  period,  of 
the  employees  of  the  exporters  who  desire  to  receive  the  benefits 
of  such  instruction.  Similar  work  might  be  done  by  the  business 
colleges  who  would  add  to  their  curriculum  special  courses  in  train- 
ing in  Latin  American  business  practices.  High  schools  and  uni- 
versities in  general  could  arrange  courses.  All  institutions  of  this 
nature  afford  excellent  means  of  teaching  Spanish  and  Portuguese. 
They  are  also  well  adapted  to  give  instr\iction  in  geography,  tar- 
iffs, etc. 

The  Basis  of  Instruction  for  Foreign  Trade. — Instruction  for 
foreign  trade  should  not  be  confined  solely  to  the  technical  prac- 
tices involved  in  the  development  of  an  export  business  but  should 
also  deal  with  the  larger  aspects  of  the  question.  Roughly,  such 
a  course  would  be  based  on  the  following  essentials : 

1.  A  practical  training  in  commercial  geography.  The  student 
should  be  taught  the  conditions  which  prevail  in  other  countries. 

2.  A  study  of  the  commerce  of  the  world.  This  should  include 
analysis  of  the  export  statistics  of  the  United  States  and  other 
countries  and  the  questions  of  transportation,  trade  laws,  etc. 


366  EXPORTING  TO  LATIN  AMERICA 

3.  The  customs  and  life  of  foreign  peoples.  Languages,  corre- 
spondence, commercial  terms,  etc.,  should  naturally  be  studied. 

4.  Concrete  problems  suggested  by  the  various  phases  of  export 
trade  practice  should  be  discussed  and  opportunities  should  be 
given  the  students  to  hear  authorities  in  the  various  features  of 
this  branch  of  trade. 

5.  The  methods  of  doing  business,  the  application  of  commercial 
and  maritime  laws  and  the  financing  of  export  trade  should  like- 
wise be  taught. 

6.  Export  trade  in  its  broader  phases  including  advertising, 
salesmanship,  and  the  development  of  new  markets  should  be  stud- 
ied. On  page  358  is  a  list  of  subjects  which  will  suggest  other 
topics;  this  can  be  greatly  elaborated. 

Foundation  Work  for  Export  Career. — The  rapid  growth  of  the 
foreign  trade  of  the  United  States  emphasizes  the  necessity  for 
greater  attention  to  the  specialized  training  of  young  men  for  this 
service.  Foreign  trade  practice  is  becoming  so  complex  that  need 
for  technical  training  is  daily  becoming  more  insistent.  This 
need  has  long  been  recognized  by  the  exporters  in  European  coun- 
tries, whose  warehouses  and  offices  are  constantly  developing  young 
men.  The  continuation  schools  of  Germany  offer  a  partial  solu- 
tion of  the  problem  of  education  of  the  United  States  for  foreign 
trade.  However,  the  work  need  not  be  confined  to  one  particular 
plan  or  institution.  Advantage  should  be  taken  of  the  best  means 
at  hand  and  educators  generally  should  be  impressed  not  alone 
with  the  opportunity  but  also  with  the  duty  of  giving  this 
education. 

The  Character  of  the  Instruction  That  Should  Be  Given. — In 
order  to  be  of  the  greatest  benefit  instruction  should  be  practical 
and  should  enable  the  student  to  cope  with  the  actual  problems 
that  arise  in  daily  relation  with  the  Latin  American  countries. 
Advantage  could  be  taken  of  the  instructors  attached  to  those 
institutions  which  undertake  this  work,  for  the  teaching  of  the 
necessary  languages  and  for  the  general  direction  of  the  school. 
The  instruction  should  touch  upon  every  phase  of  export  trade 
from  the  geographical,  economic,  and  business  standpoint.  This 
might  be  a  series  of  lectures  given  by  experts  in  tlieir  particular 
field,  recognized  authorities,  and  men  who  have  achieved  successes 
in  foreign  trade.    In  addition  there  should  be  enlisted  the  services 


COMMEECIAL  EDUCATIOX  FOR  FOREIGN  TRADE     307* 

of  the  experts  of  the  Department  of  Foreign  and  Domestic  Com- 
merce, including  the  agents  of  the  Bureaus  in  the  various  cities, 
the  Consuls  who  return  to  the  United  States  on  visits,  the  com- 
mercial attaches  and  special  agents  of  the  department.  The  lec- 
tures should  be  logically  developed  in  order  that  the  student  may  be 
taught  all  the  essentials  of  business. 

A  Suggested  Federal  School  of  Commerce. — It  has  been  sug- 
gested that  there  be  established  in  Washington  a  Federal  Graduate 
School  of  Commerce  which  shall  be  closely  allied  with  Federal 
agencies  and  institutions.  It  is  believed  that  young  men  desirous 
of  preparing  for  the  foreign  service  would  enter  such  an  insti- 
tution to  complete  their  commercial  education.  This  institution 
would  fill  a  particular  need  and  would  naturally  not  conflict  with 
other  courses  of  instruction  in  universities  or  other  institutions  of 
learning.  The  purpose  of  this  institution  would  be  so  to  educate 
the  commercial  representatives  of  the  United  States  that  they  would 
be  able  to  compete  with  the  representatives  of  European  nations 
who  are  given  unusual  opportunities  to  equip  themselves  in  order 
to  cope  with  the  severe  struggle  for  international  trade  supremacy. 

A  Course  of  Instruction  in  Foreign  Trade. — Under  the  direction 
of  Dr.  Edward  E.  Pratt,  Chief  of  the  Bureau  of  Foreign  and  Do- 
mestic Commerce  (of  the  United  States  Department  of  Com- 
merce), there  has  been  arranged  by  the  Business  Training  Corpora- 
tion of  New  York  a  course  of  instruction  in  Foreign  Trade.  The 
men  who  cooperate  with  Dr.  Pratt  are  recognized  authorities  in 
export  trade  matters  and  the  course  is  exceedingly  comprehensive. 
It  is  the  plan  of  the  founders  of  the  course  to  instruct  men  in 
foreign  trade  from  all  standpoints,  and  arrangements  have  been 
made  to  conduct  the  course  through  correspondence  and  by  means 
of  study  groups.  Particular  attention  is  given  to  the  application 
of  the  instruction  to  concrete  problems.  The  fee  charged  is  thirty 
dollars.  The  office  of  the  corporation  is  185  Madison  Ave.,  New 
York  City. 

How  a  Student  Can  Educate  Himself. — It  is  often  impossible 
for  a  student  to  take  a  course  of  instruction.  Nevertheless,  by 
application,  much  can  be  learned  regarding  export  trade.  In  the 
Appendix  there  is  given  a  list  of  best  books  and  articles  that  deal 
with  Latin  American  trade  in  its  different  phases,  ant  on  page  464: 
is  given  a  list  of  books  that  should  be  owned  by  all  who  require 


308  EXPORTING  TO  LATIN  AMERICA 

authoritative  works  on  export  commerce.     By  a  careful  reading  of 
these  books  much  knowledge  can  be  acquired. 

Books  Concerning  latin  American  Opportunities  for  Young 
Men. — A  book  recently  published  is  of  interest  to  all  students  of 
Latin  American  problems.  It  "considers  in  detail  the  opportu- 
nities, advantages  and  disadvantages  in  the  professions  and  in  many 
lines  of  business."    It  is  listed  on  page  465  of  the  Appendix. 


CHAPTER  XXVIII 
PRODUCTS  AND  MANUFACTURES  SALABLE  IN  LATIN  AMERICA 

Introduction. — The  following  is  a  list  of  the  principal  articles 
adapted  to  the  Latin  American  markets.  It  will  be  readily  under- 
stood from  the  preceding  chapters  that  the  conditions  governing 
the  sale  of  these  articles  vary  materially  in  the  different  countries. 
In  a  general  way,  practically  all  products  and  manufactures  sold 
in  the  United  States  can  be  marketed  in  at  least  certain  parts  of 
Latin  America.  This  applies  with  particular  force  to  the  large 
cities.  Market  possibilities  can  only  be  determined  by  the  analysis 
suggested  in  Chapter  II.  The  articles  listed  below  are  the  prin- 
cipal ones  which  can  be  sold  to  the  Latin  American  countries. 

Advertising  Novelties. — The  value  of  advertising  as  a  means  to 
increasing  business  has  been  widely  recognized  throughout  Latin 
America.  The  demand  for  advertising  novelties  is  increasing,  par- 
ticularly in  the  larger  cities.  Articles  of  real  merit,  especially  if 
based  on  a  new  idea,  find  a  ready  sale.  In  the  principal  capitals 
there  are  agents  whose  efforts  are  confined  to  advertising  in  all 
its  branches. 

Agricultural  Implements,  Machinery  and  Plantation  Supplies. 
— The  manufacturers  of  agricultural  machinery  and  plantation  sup- 
plies are  among  the  pioneers  in  Latin  American  trade.  The  field 
is  practically  unlimited  and  the  future  affords  great  possibilities. 
The  application  of  more  intensive  methods  of  agriculture,  the  adop- 
tion of  modern  systems  where  old  customs  still  prevailed,  and  the 
wide  variety  of  climates  make  Latin  iVmerica  a  promising  field  for 
the  manufacturers  of  agricultural  machinery  and  supplies. 

Com  planters  Corn  shellers  Cultivators 

Cutters   (feed  and  en-     Disk  plows  Drills  (grain) 

silage)  Farm  tractors  Fertilizer  dryers 

Earth  augers  Grain  sprouters  Grubbers 

Harrows  Pasteurizers  (for  Planters 

Hay  tools  dairies)  Seeders 

369 


370  EXPOETING  TO  LATIN  AMEEICA 

Manure  spreaders  Seed  sowers  Sprayers 

Sheep      shearing  ma-     Weeders  Threshing  machinery 

chines  Cream  separators  Saw  mills 

Grain  storage-tanks  Windmills  Fencing 

Wire  stretchers  Baling  presses  Cotton  gins 

Beehives  Plows  Bee  smokers 

Foundations  Honey  boxes  Honeycomb 

Amusements. — Latin  America  offers  a  fertile  field  to  the  manu- 
facturers of  amusement  equipment.  With  an  increasing  wealth  of 
the  Southern  trade  fields  will  come  a  larger  demand  for  amusement 
devices.    This  field  can  best  be  studied  by  personal  observation. 

Merry-go-rounds  Chutes  Swings 

Scenic  railways 

Arms,  Munition,  Powder  and  Explosives. — ^The  primitive  condi- 
tions which  exist  in  many  parts  of  Latin  America  and  the  need 
of  arms  and  ammunition  by  hunters  and  pioneers  insure  a  good 
market  for  the  products  of  American  gun  and  revolver  manufac- 
turers. The  demand  for  powder  and  explosives  generally  is  large. 
The  purposes  for  which  they  have  been  used  in  the  United  States 
are  duplicated  in  all  their  varied  forms  in  Latin  America. 

Gun  powder  Blasting  powder  Shot 

Rifles  Shotguns  Revolvers 

Awnings,  Tents,  Sails  and  Canvas. — The  various  manufacturers 
of  canvas  enjoy  a  large  demand  in  practically  all  countries  of 
Latin  America.  The  importation  of  canvas,  which  is  used  for 
many  purposes,  is  particularly  large,  while  awnings  are  a  neces- 
sity because  of  the  tropical  sun;  the  use  of  tents  is  also  very 
extensive. 

Bags  and  Bagging. — An  analysis  of  the  products  of  Latin  Amer- 
ica indicate  the  necessity  for  the  use  of  bags  and  bagging  in  many 
forms.  The  chief  competitor  of  the  United  States  has  been  Eng- 
land but  the  imports  of  bags  and  bagging  from  the  United  States 
are  large  and  can  be  increased.  The  following  are  some  of  the 
principal  kinds  of  bags  used : 

Meal  bags  Salt  bags  Gunny  bags 

Coffee  bags  Flour  bags 


SALABLE  PRODFCTS  AND  MANUFACTUEES   371 

Barbers'  Supplies  and  Furniture. — The  increasing  demand  for 
comfort  of  all  kinds  insures  a  sale  for  modern  barbers'  furniture, 
toilet  articles,  drugs,  supplies,  etc.  A  large  business  is  already 
being  done  by  some  manufacturers  and  Latin  America  offers  a 
particularly  good  field  for  barbers'  supplies. 

Bicycles,  Motor  Cycles,  and  Accessories. — The  success  achieved 
by  manufacturers  of  these  useful  articles  indicates  the  possibilities 
in  the  Latin  American  field.  This  is  particularly  true  of  motor 
cycles  which  are  becoming  more  popular. 

Bicycles  Motor  cycles  Tricycles 

Automobiles,  Motor  Vehicles  and  Supplies. — The  capitals  of 
Latin  America  are  noted  for  their  number  of  wealthy  residents  as 
well  as  for  beautiful  well-paved  streets,  which  make  conditions 
ideal  for  motor  vehicles.  The  adoption  of  motor  trucks  for 
freight  handling  and  package  delivery  opens  another  field  which 
is  only  beginning  to  develop.  While  conditions  in  some  of  the 
countries,  because  of  poor  roads,  are  still  unfavorable,  the  agita- 
tion for  betterment  is  such  that  the  alert  manufacturer  will  find 
it  advantageous  to  watch  developments. 

Automobile  brake   lin-  Automobile  horns  Spark  plugs    . 

ings  Automobile  lamps  Magnetos 

Automobile  m^otors  Automobile  tires  Tire  vulcanizers 

Automobile    top    hard-  Automobile   clencher  Automobile  gauges 

ware  and  trimmings  rims 

Automobile  trucks 

Billiard  and  Pool  Tables  and  Supplies. — The  Latin  Americans 
are  very  fond  of  diversions  and  in  almost  every  community  there 
are  one  or  more  clubs.  In  the  larger  cities  are  found  establish- 
ments devoted  exclusively  to  billiard  and  pool,  while  hotels,  bars, 
etc.,  are  frequent  purchasers. 

Boats  and  Accessories. — Because  of  the  large  number  of  rivers 
and  absolute  necessity  for  water  transportation,  excellent  oppor- 
tunities exist  for  the  sale  of  launches,  motor  boats,  sailboats,  etc. 
This  applies  to  practically  every  one  of  the  twenty  Latin  American 
republics,  since  rivers  are  found  in  all  the  countries  and  many  of 
them  are  navigable  for  at  least  some  distance. 


373 


EXPOETING  TO  LATIN  AMEEICA 


Canoes 
Eowboats 


Launches 
Sailboats 


Motor  boats 
Yachts 


Boots  and  Shoes, — One  of  the  branches  of  trade  which  has  shown 
a  marked  increase  in  exports  is  the  manufacture  of  boots  and 
shoes.  While  this  line  cannot  be  sold  in  all  of  the  republics,  there 
are  splendid  opportunities  in  some  of  the  most  important  ones. 
The  demand  for  boots  and  shoes  of  American  manufacture  is 
increasing  in  all  the  countries  except  those  which  have  fixed  a 
prohibitive  tariff  thereon. 


Shoes  of  leather 
Slippers 


Shoes  of  rubber 
Eubber  overshoes 


Shoes  of  canvas 
Galoshes 


Building  Material. — The  architects,  contractors,  builders,  and 
large  individual  corporations  in  many  of  the  cities  of  Latin  Amer- 
ica are  looking  to  the  United  States  for  their  supplies  of  building 
material.  The  individual  needs  of  each  country  must  be  investi- 
gated, but  the  following  list  of  items  indicates  the  possibilities 
which  exist  to  a  very  great  extent  in  practically  all  of  the  countries. 


Wall  board 
Bank  fittings 
Mosaics 
Nails 
Eoofing     and 

tiles 
Steel  shelving 
Tile 


shingle 


Sewer  pipe 
Wall  paper 
Cornices 

Moldings    and    carv- 
ings 
Eoofing  cement 
Building  brick 
Drain  tile 


Waterproofing        foi 

concrete 
Floor  and  wall  tiles 
Cement 
Steel    ceilings,    side 

walls,  roofing,  etc. 
Ornamental  and 

fancy    brick 


Carriages,  Wagons,  and  Parts. — The  use  of  vehicles  in  Latin 
America  is  very  extensive  but  increasing.  While  the  character  and 
methods  of  transportation  are  changing,  a  careful  study  of  local 
needs  and  requirements  will  reveal  splendid  possibilities  open  to 
American  manufacturers. 


Ambulance 
Farm  wagons 
Coal  wagons 
Surreys 
Tops 
Bodies 

Carriage  rails 
Leather  dashes 


Wagon  rails 

Military  transport 

Buggies 

Phaetons 

Cushions 

Axles 

Dumping  wagons 


Delivery  wagons 

Carts 

Traps 

Wheels 

Shafts 

Carriage  fenders 

Cane  wajjona 


SALABLE  PEODUCTS  AND  MANUFACTURES   373 

Cash  Registers,  Adding  and  Calculating  Machines. — The  suc- 
cesses achieved  by  the  manufacturers  of  cash  registers  is  an  index 
to  the  possibilities  of  Latin  America  for  all  sorts  of  mechanical 
labor-saving  devices.  Every  country  affords  opportunities,  but  they 
are  particularly  bright  in  the  larger  republics. 

Cement. — One  of  the  principal  imports  from  the  United  States 
into  Latin  America  is  cement.  The  demand  is  due  to  the  vast 
amount  of  construction,  the  development  of  hydro-electric  proj- 
ects, and  all  the  other  uses  for  which  cement  is  employed  in  this 
country. 

Asbestos  Portland  Furnace 

Coal  and  Fuel. — One  of  the  results  of  the  European  War  has 
been  an  increased  importation  of  coal  and  fuel  from  the  United 
States.  In  the  past,  England  and  Austria  have  been  depended 
upon  largely  for  coal  and  other  fuel,  which  have  been  bought  by 
the  manufacturers  and  carriers  of  Latin  America.  The  growth'  of 
this  trade  is  dependent  exclusively  upon  meeting  competitive 
conditions. 

Men's  ClotMng. — Certain  articles  of  wearing  apparel  for  men 
are  already  famous  throughout  Latin  America.  The  success 
achieved  by  some  manufacturers  can  be  equaled  by  the  manufac- 
turers of  other  articles  if  intelligent  efforts  are  made  to  obtain 
the  business.  The  opportunities  exist  in  practically  all  the  coun- 
tries, and  novelties  in  particular  would  find  a  ready  sale.  Rain- 
coats adapted  to  the  climate.  Palm  Beach  and  similar  fabrics  are 
in  demand. 


Suits 

Overcoats 

Waterpn 

Sweaters 

Underwear 

Hosiery- 

Hats 

Caps 

Overalls 

Pants 

Shirts 

Collars 

Cuffs 

Suspenders 

Garters 

Ties 

Handkerchiefs 

Gloves 

Belts 

Women's  Clothing. — The  women  of  Latin  America  have  been 
depending  in  the  past  on  Europe,  and  particularly  Paris,  for  their 
wearing  apparel.     By  careful  studying  of  market  needs  and  by 


374  EXPORTING  TO  LATIN  AMERICA 

supplying  novelties  and  styles  suitable  to  the  different  markets, 
American  manufacturers  can  easily  compete.  The  opportunities 
for  the  sale  of  wearing  apparel  will  naturally  grow  in  proportion 
to  the  population  and  the  increase  in  the  wealth  of  the  people. 


Dresses 

Handkerchiefs 

Skirts 

Suits 

Coats 

Waists 

Wrappers 

Waterproof  clothing 

Petticoats 

Kimonos 

Dressing  jackets 

Underwear 

Hosiery 

Sweaters 

Corsets 

Aprons 

Shawls 

Hoods 

Scarfs 

Gloves 

Cooperage. — Many  of  the  industries  of  Latin  America  are  de- 
pendent upon  the  use  of  barrels,  casks,  etc.  Americans,  in  the 
past,  have  been  depended  upon  to  supply  these,  and  the  opportuni- 
ties for  the  sale  of  such  articles  are  steadily  increasing. 

Barrels  Casks  Hogsheads 

Kegs  Staves  Shooks 

Chemicals,  Drugs,  Dyes,  Extracts,  Pharmaceutical  Products, 
Medicines. — The  exportation  to  Latin  America  of  chemicals,  med- 
icines, drugs,  and  pharmaceutical  products  is  very  heavy.  As  they 
have  been  imported  largely  from  countries  most  affected  by  the 
European  War,  unusual  opportunities  exist  for  American  manufac- 
turers of  these  articles.  The  demand  comes  from  practically  all  of 
the  twenty  republics  and  is  worthy  of  serious  study,  particularly 
as  certain  pioneer  manufacturers  have  established  a  large  business 
in  many  of  the  Latin  American  republics. 

Talcum  powder  Hair  dye  Soap 

Cold  cream  Perfume  Stock     and     poultry 

Herbs  Toilet  preparations  remedies 

Dyes  PiUs  Calcium 

Carbide 

Cordage,  Rope,  and  Twine. — The  statistics  of  exports  of  the 
United  States  to  Latin  America  indicate  an  increasing  demand 
for  these  manufactures.     Because  of  the  o^rowth  of  the  industries 


SALABLE  PEODUCTS  AND  MANUFACTUEES   375 

of  Latin  America  in  which  they  are  needed,  an  attractive  field  is 
open  to  the  American  producers. 


Cordage 

Rope 

Cable 

Cotton  twine 

Jute  twine 

Sisal  twine 

Hemp  twine 

Wire  rope 

Wire  cable 

Cotton  Piece  G-oods,  Dry  Goods,  and  Textiles. — The  opportuni- 
ties for  the  sale  of  cotton  piece  goods,  dry  goods,  and  textiles  gen- 
erally have  often  been  referred  to.  Exhaustive  reports  have  been 
made  by  agents  of  the  American  Government  and  the  requirements 
in  the  various  markets  have  been  pointed  out.  The  increase  in 
population  and  the  steadily  growing  demand  for  wearing  apparel 
in  all  of  the  countries  make  this  a  field  worthy  of  particular 
consideration. 

Woven  fabrics  Piece  goods  Blankets 

Laces  Embroideries  Trimmings 

Curtains  Handkerchiefs 

Drugs  and  Druggists'  Supplies. — Among  the  pioneers  in  Latin 
American  trade  have  been  the  patent  medicine  manufacturers, 
some  of  whom  have  achieved  remarkable  successes.  The  demand 
for  pharmaceutical  products,  toilet  articles,  etc.,  is  such  that  if 
the  individual  needs  of  the  countries  are  carefully  studied  much 
business  can  be  done. 

Pharmaceuticals  Patent  medicines  Plasters 

Ointments  Syringes  Hot  water  bottles 

Electrical  Apparatus  and  Supplies. — The  rapid  industrial  devel- 
opment of  the  principal  Latin  American  republics  and  the  estab- 
lishment of  electrical  works  in  all  the  countries  make  for  a  very 
large  sale  of  electrical  apparatus  and  supplies.  Practically  every 
appliance  of  an  electrical  nature  can  be  sold  and  the  field  is  still 
in  its  infancy. 

Transformers  Switchboards  Panel  boards 

Cut-out  cabinets  Motors  Storage  batteries 

Carbons  Arc  lamps  Incandescent  lamps 


376  EXPORTING  TO  LATIN  AMERICA 


Searchlights 

Sockets 

Transmitters 

Receivers 

Rheostats 

Resistances 

Switches 

Signals 

Attachments 

Engines  and  Equipment. — While  manufacturing  in  most  of  the 
Latin  American  countries  has  not  reached  a  high  stage  of  develop- 
ment, it  is  nevertheless  increasing.  In  some  of  the  republics  the 
opportunities  are  greater  than  in  others,  and  as  the  number  of 
manufacturing  plants  is  on  the  increase  the  demands  for  engines 
will  show  a  proportionate  growth.  Engines  are  particularly- 
used  to  operate  agricultural  machinery,  small  industrial  plants, 
mills,  etc. 

Locomotives  Automatic  Corliss 

Fire  Gas  Gasoline 

Hoisting  Hauling  Winding 

Kerosene  Marine  Portable 

Producer   gas  Stationary  Traction 

Dynamos  Motors  Boilers 

Kerosene  engines  Steam  engines  Hot  air  pumping  en- 
gines 

Fencing  and  Fencing  Material. — In  practically  all  of  the  repub- 
lics there  is  a  large  demand  for  barbed  wire.  The  use  of  woven 
wire  fencing  is  increasing,  while  ornamental  and  metal  fencing  has 
long  been  a  feature.  There  is  no  doubt  whatever  that  the  exporta- 
tions  of  these  articles  will  increase  from  year  to  year. 

Ornamental  Metal  fence  Coiled  wire 

Barbed  wire  Woven  wire  Wrought  iron 

Iron  posts 

Fertilizer. — While  Latin  America  is  famous  for  its  fertility,  the 
steady  cultivation  of  the  field  makes  the  use  of  fertilizer  highly 
essential.  The  increasing  demand  for  fertilizer  insures  a  good 
field,  and  in  certain  of  the  republics  the  importation  is  already  very 
considerable. 

Ammoniated  Concentrated      phos-  Fish   scrap 

Complete   fertilizers  phates  Manures 

Phosi)hate  of  lime  Phosphate  rock  Superphosphates 

Bone  ash  Chemical  manures  Soda  products 


SALABLE  PRODUCTS  AND  MANUFACTURES   377 

Factory  Equipment  and  Mill  Supplies. — Practically  all  the  sup- 
plies, equipment,  and  machinery  needed  in  American  factories  can 
be  marketed  in  certain  cities  in  Latin  America.  The  demand  for 
factory  equipment  and  mill  supplies  in  general  is  growing  be- 
cause of  the  increasing  number  of  mills  and  factories  being  estab- 
lished. The  details  and  the  opportunities  can  be  learned  only  by 
careful  investigation  and  study  of  local  requirements. 

Leather  belting  Rubber  belting  Woven  belting 

Chain  belting  Four  mill  machinery  Ice  machinery 

Metal      working      ma-     Aluminum  castings  Laundry  machinery 

chinery  Railway  steel  Brass  castings 

Copper  castings  Drop  forgings  Bronze  castings 

Malleable  iron  Marine  forgings  Car  forgings 

Dredge  forgings  Iron  forgings 

Locomotive  Steel  forgings 

Fire  Fighting  Apparatus,  and  Supplies. — Although  fires  in 
Latin  America  are  not  as  common  as  in  the  United  States,  there 
are  certain  localities  in  which  the  principal  material  used  in  the 
construction  of  buildings  has  been  wood.  In  those  places — in 
fact,  generally — there  is  a  demand  for  greater  protection  against 
fires  and  for  fireproof  materials  for  construction  purposes.  The 
manufacturers  of  fire  fighting  apparatus  and  general  equipment, 
incluring  fire  extinguisher,  hose,  etc.,  can  attain  a  business  whose 
volume  will  be  in  direct  proportion  to  their  effort. 

Hose  Hose  fixtures  Fire    fighting    appa- 

ratus 

Funeral  Supplies. — The  manufacturers  of  Europe  in  the  past 
have  been  largely  depended  upon  to  supply  such  funeral  supplies 
as  have  not  been  manufactured  at  home.  There  are  in  this  in- 
dustry many  articles  which  can  be  sold  profitably  in  many  of  the 
Latin  American  countries  if  proper  efforts  are  made.  The  field 
is  a  large  one,  involving  and  applying  to  practically  all  of  the 
republics. 

Caskets  Burial  cases  Grave  vaults 

Casket  linings  Burial  garments 


378 


EXPOETING  TO  LATIN  AMERICA 


Glass,  Glassware,  Chinaware,  Porcelain,  Pottery,  Earthenware, 
Etc. — As  Germany  has  been  depended  upon  by  most  of  the  coun- 
tries of  Latin  America  in  the  past  for  the  bulk  of  the  supplies 
of  glass,  chinaware,  porcelain,  etc.,  the  manufacturers  of  these 
articles  will  find  important  markets  in  practically  all  of  the  re- 
publics. The  range  of  prices  is  very  extensive  and  the  demand 
includes  all  grades,  from  the  lowest  to  the  highest. 


Bottles 

Window  glass 
Skylight  glass 
Ribbed  glass 
Tableware 
Art  glass 
Carboys 


Tumblers 
Plate  glass 
Leaded  glass 
Glass  shelves 
Bottles 
Jars 


Glassware 
Floor  glass 
Ground  glass 
Chipped  glass 
Prismatic  glass 
Vases 
Graniteware 


Groceries,  Provisions,  and  Food  Products  in  General. — There 
are  certain  food  products,  groceries,  and  provisions  which  have  a 
large  sale  in  the  Latin  American  countries.  These  include  tinned 
meats  and  vegetables,  preserved  fruits,  condiments,  and  other  spe- 
cialties. In  view  of  the  fact  that  the  European  countries  have 
largely  been  depended  upon  to  supply  these  articles,  an  excellent 
opportunity  is  now  afforded  those  exporters  who  study  the  indi- 
vidual needs  of  these  countries.  Conditions  differ  widely  but  ex- 
cellent opportunities  exist. 


Canned   goods 

Meats 

Condensed  milk 

Biscuits 

Bread 

Prepared  cereals 

Crackers 

Macaroni 

Noodles 

Extracts 

Essences 

Yeast 

Baking  powder 

Pickles 

Sauces 

Preserves 

Vinegar 

Cider 

Salt 

Honey 

Hardware,  Cutlery  Tools,  Etc. — Among  the  pioneers  in  the 
export  trade  have  been  the  manufacturers  and  jobbers  of  hardware 
and  cutlery.  Their  opportunities  in  Latin  America  have  been 
enlarged  as  a  result  of  tlie  European  War,  inasmuch  as  many 
of  the  cheaper  grades  have  lieretofore  been  bought  in  Ccrmany. 
American  manufacturers  wlio  will  seriously  investigate  the  pres- 


SALABLE  PEODUCTS  AND  MANUFACTURES      379 

ent  opportinijties   and   take   advantage   of   the   situation   will   be 
able  materially  to  increase  their  business. 

Bolts  Cutlery  Carriage  tops 

Butchers'  tools  Hardware  Hardware   novelties 

Cork  pullers  Cherry  stoners  Ice  picks 

Shears  Scissors  Machine  tools 

Nails  Spikes  Builders'  tools 

Household  shelf  goods  Screws  Chains 
Specialties 

Heating  Apparatus. — Many  of  the  Latin  American  cities  are 
located  at  such  an  altitude  that  climatic  conditions  closely  resem- 
ble those  of  northerly  latitudes.  In  some  of  the  cities,  hotels, 
railroad  stations,  and  public  buildings  have  been  equipped  with 
heating  apparatus,  cither  gas,  hot  water,  steam,  or  hot  air.  The 
increasing  demand  for  comforts  insures  a  sale  for  many  of  the 
appliances  which  find  such  a  ready  sale  in  the  United  States. 

Hot  Water  Steam  Hot  Air 

Boilers  Furnaces  Radiators 

Registers  Pipes  Valves 

Gauges  Cocks 

Hose  and  Hose  Fixtures. — The  sale  of  hose  and  hose  fixtures  of 
all  sorts  is  rapidly  on  the  increase.  This  includes  hose  made  of 
leather,  etc.,  besides  the  usual  fixtures.  The  uses  in  Latin  America 
are  those  of  the  same  manufactures  in  the  United  States. 

Leather  hose  Woven  hose  Rubber  hose 

Fixtures  Sprinklers  Sprayers 

Household  Furnishings,  Utensils,  Furniture,  Etc. — The  Latin 
Americans  are  already  large  purchasers  of  household  supplies  of 
all  sorts.  The  increasing  wealth  insures  a  sale  for  practically 
every  item  that  is  used  in  American  households,  particularly  of 
the  better  quality. 

Cooking  ovens  Beds  Flatirons 

Cots  Bedding  Household  specialties 


380 


EXPORTING  TO  LATIN"  AMERICA 


Lamps  • 

Lanterns 
Springs 
Mantel  grates 
Toilet  articles 
Coffee  grinders 
Mops 


Lamp  cord 

Mattresses 

Stoves 

Tinware 

Wall  paper 

Meat  choppers 

Tubs 


Kitchen  cabinets 
Sewing  machines 
Refrigerators 
Vacuum  cleaners 
Aluminum  ware . 
Brooms 
Washboards 
Hammocks 


Instruments:  Professional,  Scientific,  Etc. — In  Latin  America 
advances  are  being  made  in  the  field  of  science  as  in  the  material 
pursuits.  For  this  reason  surgical  and  dentists'  instruments  which 
are  already  largely  in  demand  will  grow  in  popularity.  The  sale 
of  other  instruments  will  also  increase.  The  appliances  and  the 
furniture  for  hospitals,  physicians,  and  surgeons  will  meet  with 
an  increasing  sale  throughout  Latin  America. 


Astronomical 

Surveyors 

Barometers 

Clinometers 

Thermometers 


Meteorological 

Taxidermists 

Binoculars 

Calipers 

Chronographs 

Surgical  instruments 


Nautical 

Undertakers 

Calibrators 

Calorimeters 

Compasses 


Jewelry,  Clocks,  Watches  and  Silverware. — In  this  field  as  in 
many  others  the  importations  into  Latin  America  have  been  chiefly 
from  Europe.  While  this  is  mainly  due  to  the  lack  of  effort  made 
by  American  producers,  there  is  no  doubt  that  a  failure  to  meet 
the  requirements  is  largely  responsible.  As  Germany  has  figured 
very  prominently  in  this  field,  the  opportunities  for  American 
manufacturers  are  especially  bright  as  a  result  of  the  European 
War. 


Rings 

Pins 

Bracelets 

Chains 

Rolled  plate 

Plated  ware 

Trimmings 

Leather,  Hides,  and  Skins. — Many  South  American  countries 
are  heavy  exporters  of  hides.  They  are  large  importers  of  finished 
leathers  and  particularly  upper  leather  suitable  for  footwear.     An 


SALABLE  PRODUCTS  AND  MANUFACTURES   381 

excellent  field  is  afforded  in  practically  all  of  the  countries  for 
the  products  of  American  tanneries.  This  applies  not  only  to 
shoe  manufacturing  in  those  republics  in  which  it  has  assumed 
large  proportions,  but  other  lines  of  manufacture  in  which  leath- 
er is  used  also  offer  fine  opportunities  for  American  exporters. 


Tanned 

Curried 

Finished 

Rough 

Sole 

Upper 

Morocco 

Colored  skins 

Horsehides 

Calfskins 

Kid  skins 

Goatskins 

Sheepskins 

Harness 

Carriage 

Trunks 

Bag 

Pocketbook 

Bookbinders 

Furniture 

Glove 

Boot  and  shoe 

Cut  stock 

Leather  Goods. — Practically  every  article  that  is  made  of  leather 
can  be  sold  to  some  extent  in  the  Latin  American  republics.  The 
opportunities  are  in  direct  ratio  to  the  efforts  made,  and  the  field, 
on  the  whole,  is  a  very  attractive  one. 


Belts 

Leather  aprons 

Garments 

Pocketbooks 


Dog  collars 
Washers 
Razor  strops 

Purses 


Embossed  leather 
Chair  seats 
Gloves 


Lumber,  Timber,  Rough  and  Planing  Mill  Products. — Because 
of  the  scarcity  or  complete  lack  of  lumber  or  timber  suitable  for 
construction  purposes  American  producers  have  been  looked  to 
for  supplies  of  these  important  items.  Naturally  the  conditions 
vary  materially  and  the  individual  needs  of  the  various  countries 
must  be  carefully  studied. 


Logs 

Builders'  finish 

Sash 

Doors 

Blinds 

Windows 

Panels 

Flooring 

Squared  timber 

Poles 

Cross  ties 

Mine  timber 

Wheel  stock 

Handle  stock 

Rough  lumber 

Dressed  lumber 

Shingles 

Lath 

Machinery  and  Machine  Tools. — It  has  already  been  indicated 
in  previous  paragraphs  that  the  demand  for  machinery  and  ma- 


382 


EXPOETING  TO  LATIN  AMERICA 


chine  tools  of  all  sorts  is  on  the  increase.  This  demand  is  not 
confined  to  one  particular  variety  but  includes  practically  all  sorts, 
as  the  following  specifications  will  indicate.  The  exports  of  ma- 
chinery to  the  Latin  American  countries  during  the  next  fifteen 
years  will  increase  by  leaps  and  bounds.  Both  hand-  and  foot- 
power  machinery  is  in  demand.  Machinery  for  rice-cleaning,  irri- 
gation, and  water  power  is  required. 


Bakers 

Brewers 

Cement  mixing 

Dynamo  electrical 

Excavating 

Hydraulic 

Metal  working 

Power   transmission 

Oil  mill 

Textile 

Boring  tools 

Cutting-off 

Grinding 

Key  seating 

Slotting 


Boot  and   shoe 

Briekmaking 

Coopers 

Elevating 

Filtering 

Laundry 

Quarrying 

Road-making 

Paper  mill 

Well-drilling 

Turning  tools 

Drilling 

Milling 

Planing 


Bottling 

Butchers 

Dredging 

Conveying 

Flour  milling 

Mining 

Refrigerating 

Sawmill 

Tanning 

Woodworking 

Broaching  tools 

Gear  cutting 

Bobbing 

Shaping 


Motion  Picture  Apparatus,  Stereopticon. — Among  the  earliest 
users  of  the  biograph  a])paratus  were  the  Latin  Americans.  The 
demand  for  films,  motion  picture  machines,  etc.,  will  grow  in 
proportion  to  the  increase  in  population,  and  already  American 
films  have  a  fine  demand. 


SHdes 


Films 


Motion    picture   ma- 
chines 


Musical  Instruments. — The  people  of  Latin  America  are  ex- 
tremely fond  of  music  in  all  its  forms.  The  sale  of  pianos,  or- 
gans, player  pianos,  etc.,  is  rapidly  increasing.  Latin  America 
offers  one  of  the  most  fertile  fields  for  the  manufacturers  of  these 
instruments. 


Pianos 

Pianolas 

Phonographs 


Organs 

String  instruments 


Player  pianos 
Wood   instruments 
Brass  instruments 


SALABLE  PKODUCTS  AND  MANUFACTUEES   383 

Mining  Machinery,  Equipment  and  Supplies. — One  of  the  chief 
sources  of  Latin  American  wealth  is  mining.  This  industry  is 
already  conducted  on  a  large  scale  and  all  the  best  methods  for 
the  extraction  of  the  ore  are  applied.  As  the  development  of  min- 
eral bodies  during  the  next  few  years  wuU  undoubtedly  make  for 
an  increase  in  mining,  the  sale  of  mining  machinery,  products, 
and  supplies  will  rapidly  grow.  While  the  opportunities  are 
greater  in  certain  of  the  countries  than  others,  the  field  as  a  whole 
is  a  highly  attractive  one. 

Digging  machinery  Excavating  machinery 

Drilling  machinery  Gears 

Drop  hammers  Grease  cups 

Ore  handling  machinery  Hangers  for  shafting 

Shaft  hangers  Chains 

Hydraulic  machinery  Rope 

Castings  Aerial  tramways 

Oils. — The  demand  for  oils  increases  with  the  growth  of  manu- 
facture and  the  development  of  the  countries.  The  manufacturing 
is  increasing,  and  as  the  sale  of  motors  is  also  becoming  very 
heavy,  a  splendid  field  is  open  to  the  producers  of  oils.  The  use 
of  oils  for  illuminating,  for  food,  etc.,  is  also  encouraging  and 
the  outlook  is  very  bright. 

Vegetable  oils  Corn  oils  Cottonseed  oil 

Linseed  oil  Sesame-seed  Peanut  oil 

Mineral  oils  Crude  oil  Naphthas 

Lubricating  Animal  oils  Illuminating  oil 

Lard  oil  Oleo  oil 

Optical  Goods. — Among  the  manufacturers  who  have  success- 
fully introduced  their  products  in  Latin  America  have  been  the 
producers  of  optical  supplies.  There  is  an  increasing  demand  for 
optical  glasses  and  lenses,  and  as  they  are  needed  in  all  of  the 
countries  the  field  is  a  large  one. 

Spectacles  Eyeglasses  Lenses 

Opera  glasses  Frames  Cases 

Naval  Stores,  Pitch,  Rosin,  Tar. — The  growth  of  commerce  with 
Latin  America  will  automatically  increase  the  demand  for  naval 


384  EXPORTING  TO  LATIN  AMERICA 

stores  of  all  sorts.  The  number  of  ships,  both  passenger  and 
freight,  which  sail  to  Latin  American  ports  is  rapidly  growing, 
and  in  addition  there  is  an  increasing  number  of  vessels  used  for 
local  freight  carrying.  Because  of  this  fact  the  manufacturers  of 
naval  stores,  pitch,  rosin,  etc.,  will  find  Latin  America  a  promis- 
ing field. 


Awnings 

Tents 

Sails 

Boats 

Accessories 

Cordage 

Twine 

Rope 

Turpentine 

Rosin 

Pitch 

Tar 

Paints  and  Varnishes. — Much  of  the  paint  used  in  Latin  Amer- 
ica has  heretofore  been  bought  in  Europe.  Owing  to  the  growing 
wealth  of  the  people,  the  importation  of  paint  will  become  greater 
each  year.  The  present  is  an  admirable  time  to  make  the  initial 
efforts  because  of  the  European  War. 

Paints   in  oil  Ready-mixed  Water  paints 

Kalsomines  Pigments  Fillers 

Varnishes  Shellac  Japan 

Lacquers  Liquid  Hardwood  fillers 

Stains  Carbon  black 

Photographic  Supplies  and  Art  Materials. — The  increasing  sale 
of  photographic  supplies  and  equipments  has  been  one  of  the 
features  of  Latin  American  trade  development.  This  is  another 
industry  which  will  be  materially  benefited  by  the  growing  wealth 
of  the  people.  The  demand  exists  in  practically  all  of  the  repub- 
lics and  manufacturers  will  find  a  steadily  increasing  demand  for 
their  products. 

Cameras  Lenses  Films 

Plates  Developers  Pastels 

Canvas  board  Oil  Colors  Water  colors 

Brushes  Crayons  Palette  knives 

Picture  frames  Moldings 

Printers'  Supplies,  Materials,  Etc. — One  of  the  greatest  successes 
in  the  Latin  American  field  has  been  achieved  by  a  combination 


SALABLE  PRODUCTS  AND  MANUFACTURES   385 

of  manufacturers  of  printers'  supplies.  Heretofore  Europe,  and 
particularly  Germany,  has  been  depended  upon  for  these  sup- 
plies; hence  the  outlook  is  even  greater  than  in  the  past. 

Machinery  Presses  Paper  cutters 

Typesetting  macliines       Paper  rulers  Perforators 

Staplers  Embossers  Rules 

Railway  Equipment  and  Supplies. — The  railways  and  street  cars 
in  many  Latin  American  countries  have  been  supplied  by  Ameri- 
can manufacturers.  The  transportation  facilities  are  being  ex- 
tended; hence  the  development  of  the  countries  will  be  reflected 
in  an  increasing  demand  for  railway  material.  In  this  field  the 
opportunities  are  among  the  most  promising. 


Rails 

Frogs 

Switches 

Locks 

Turntables 

Passenger  cars 

Freight  cars 

Parts 

Fittings 

Signal  apparatus 

Plumbing  Material  and  Sanitary  Supplies. — The  effect  of  Amer- 
ican sanitary  methods  has  been  felt  in  an  increasing  demand  for 
an  installation  of  modern  plumbing  in  practically  all  of  the  Latin 
American  countries.  Because  of  the  general  backward  conditions 
in  methods  of  sanitation,  the  outlook  is  most  promising.  Large 
sales  of  plumbing  materials  to  every  Latin  American  country  are 
assured. 


Bathtubs 

Lavatory  fixtures 

Sinks 

Tanks 

Pipe 

Valves 

Washers 

Basins 

Faucets 

Pipe  connections 

Rubber  goods 

Refrigerators,  Water  Coolers,  Etc. — Although  in  many  places  in 
Latin  America  ice  is  still  a  luxury  and  the  duty  on  refrigerators 
is  very  high,  in  certain  of  the  republics  the  opportunities  for  their 
sale  are  very  bright.  With  the  increase  in  wealth  will  come  an 
insistence  upon  greater  comfort,  and  this  applies  with  particular 
force  to  the  demand  for  ice.     In  this,  as  in  many  of  the  other 


386  EXPORTING  TO  LATIN"  AMERICA 

branches  of  trade,  it  is  highly  important  to  make  investigation  of 
the  individual  needs  of  the  countries. 

Roofing  Materials. — AA'ithin  the  last  few  years  the  demand  for 
patent  roofing  has  rapidly  increased.  Manufacturers  of  prepared 
roofing  will  find  an  excellent  field  in  many  of  the  countries,  but 
because  of  the  great  variety  of  climates,  the  need  for  the  study  of 
local  requirements  is  perhaps  greater  than  in  most  lines.  Con- 
scientious, sincere  efl^orts  will  be  crowned  with  success. 


Patent  roofings 

Asphalt 

Asbestos 

Cement 

Felt 

Paper 

Gravel 

Pitch 

Slate 

Tile 

Tin 

Corrugated  iron 

Steel  sheets 

Balls 

Blankets 

Brushes 

Bulbs 

Corks 

Erasers 

Gloves 

Mats 

Tubing 

Life   preservers 

Rubber  Goods. — Although  much  of  the  rough  rubber  of  the 
world  comes  from  South  America,  articles  of  which  it  forms  the 
basis  are  not  produced  in  Brazil  or  Peru.  As  a  consequence  a 
splendid  field  exists  for  American  producers  of  rubber  goods  of 
all  sorts. 

Bags 

Bottles 

Caps 

Funnels 

Sheets 

Safes  and  Vaults. — The  demand  for  safes  has  been  largely  sup- 
plied from  Europe  but  within  the  last  few  years  many  safes  and 
vaults  have  been  shipped  from  the  United  States.  The  require- 
ments of  different  sections  vaiy  greatly  but  on  the  whole  the  out- 
look for  the  sale  of  safes  is  bright. 

Scales,  Balances,  and  Weighing  Machines. — Among  the  pio- 
neers in  Latin  American  trade  have  been  the  manufacturers  of 
scales  and  balances.  By  adapting  their  products  to  local  require- 
ments, particularly  as  regards  the  metric  system,  they  have  made 
rapid  headway.  A  considerable  business  can  be  done  in  this 
important  line. 

Automatic  weighing  machines  Computing  weighing  machines 

Scales  Slot  weighing  machines 

Balances 


SALABLE  PEODUCTS  AND  MANUFACTURES   387 

Sewing  Machines  and  Parts. — Perhaps  one  of  the  most  remark- 
able successes  in  the  export  field  has  been  won  by  a  large  sewing 
machine  company.  The  demand  for  sewing  machines  can  be 
measured  only  by  the  increase  of  population  and  the  outlook  for 
a  continued  sale  is  very  promising. 

School  Supplies  and  Equipment. — The  educational  facilities  in 
most  of  the  Latin  American  republics  are  still  very  primitive. 
The  example  set  by  certain  of  the  more  progressive  countries 
points  to  the  extension  of  education  in  the  other  republics  and 
this  will  be  to  the  advantage  of  those  American  manufacturers 
who  undertake  a  careful  study  of  the  situation.'  Of  this  field  it 
may  be  said  that  the  opportunities  are  practically  unlimited. 

Scientific  and  Medical  Supplies. — Among  the  best  opportunities 
for  American  manufacturers  are  scientific  and  medical  supplies. 
A  number  of  Latin  American  students  at  American  institutions  of 
learning  finish  scientific  courses  yearly.  As  many  return  to  their 
own  countries  to  practice,  the  demand  for  scientific,  medical,  and 
surgical  equipment  increases.  An  unusual  opportunity  exists  at 
the  present  time,  since  Germany  has  heretofore  supplied  most  of 
the  surgical  and  other  apparatus.  Dental  supplies  already  have  a 
large  sale  and  the  demand  will  naturally  increase. 

Dental  instruments  and  supplies  Architectural    supplies 

Surgical  instruments  and  appliances  Optical  goods 

Soap,  Washing  Powder,  Grease,  Candles,  Etc. — The  manufac- 
ture of  candles  and  soap  is  carried  on  in  practically  all  of  the  Latin 
American  countries.  The  stearin  which  is  largely  used  has  been 
almost  exclusively  imported  from  Germany.  The  better  grades  of 
soap,  candles,  etc.,  are  imported  largely  from  Europe  and  the 
United  States;  therefore  the  field  for  American  manufacturers  is 
very  bright. 

Grease  Tallow  Soap 

Sugar  Mill  Equipment  and  Supplies. — One  of  the  chief  indus- 
tries of  Latin  America  is  the  cultivation  of  sugar  and  the  sale 
of  its  by-products.  An  important  item  in  American  exports  has 
been  equipment  for  sugar  naills,  and  as  the  area  devoted  to  the 


388 


EXPORTING  TO  LATIN  AMEEICA 


raising  of  sugar  will  increase  in  proportion  to  the  increase  of  popu- 
lation, manufacturers  of  sugar  mill  machinery  and  supplies  are 
afforded  an  additional  field. 

Spirits,  Wines,  Malt  Liquors,  Mineral  Waters,  Etc. — It  is 
widely  known  that  wines  and  liquors  have  a  large  demand  in  Latin 
America.  Heretofore  they  have  been  bought  principally  in  Eu- 
rope and  this  has  especially  been  the  case  with  beer.  The  Euro- 
pean War  opens  new  possibilities  for  American  manufacturers 
whose  opportunities  for  sales  in  Latin  America  are  very  large. 


Beer 

Liquors 

Whisky 


Brandy 
Cordials 


Gin 
Rum 


Sporting  and  Athletic  Goods. — The  introduction  of  sports  and 
games  into  Latin  America  insures  an  increasing  demand  for  the 
sporting  articles  and  appliances.  Hunting,  fishing,  etc.,  are  very 
important  in  Latin  America  and  the  need  for  articles  used  therein 
is  rapidly  growing. 


Baseball 

Tennis 

Gymnasium  supplies 

Rowing  supplies 


Bowling 
Golf 

Dumb-bells 
Sporting  uniforms 


Football 
Fishing  tackle 
Punching  bags 
Skates 


Stationery,  Office  Supplies,  Stationers'  Goods,  Etc. — The  intro- 
duction of  modern  methods  and  the  adoption  of  time-saving  ap- 
pliances has  marked  the  development  of  Latin  American  trade. 
Because  of  this  fact  the  manufacturers  of  office  supplies  of  all 
sorts  and  business  equipment  in  general  find  in  Latin  America 
a  field  in  which  their  opportunities  will  grow  in  proportion  to  the 
development  of  the  country.  The  business  already  being  done  is 
large,  but  susceptible  of  further  development. 


Writinp:   paper 

Envelopes 

Carbon  paper 

Blank  books 

Ledgers 

Blotting  paper 

Pens 

Pencils 

Chalk 

Crayons 

Ink 

Inkstands 

Desk  pads 

Erasers 

Clips 

Fasteners 

Index  cards 

Playing  cards 

School   supplies 

Typewriters 

Ribbons 

Cleaning  tools 

SALABLE  PRODUCTS  AND  MANUFACTURES   389 

Store  Fixtures. — One  of  the  most  promising  fields  for  American 
manufacturers  of  certain  goods  is  that  of  store  fixtures.  The  shops 
of  Latin  America  are  being  rapidly  moderiiized  and  store  fixtures 
and  equipment  of  the  most  effective  sorts  are  being  sought  by  the 
progressive  Latin  American  merchants.  This  is  a  field  which 
should  be  carefully  cultivated,  as  the  opportunities  are  great. 


APPENDIX 

SOME  FEATURES  OF  THE  LATIN  AMERICAN  CLIMATES 

Rainfall. — It  is  a  peculiarity  of  the  wet  season  in  many  of  the 
Latin  American  countries  that  the  heaviest  rains  fall  late  in  the 
afternoon  or  early  evening.  The  days  often  open  very  beautifully, 
while  clouds  gather  and  become  so  charged  with  moisture  that  a 
storm  breaks  in  the  afternoon.  In  the  uplands  the  sun,  because 
of  the  latitude,  is  often  extremely  hot,  though  the  temperature  may 
be  far  less  in  the  shade.  For  this  reason  its  fuU  glare  should  be 
avoided,  the  quick  changes  from  shade  to  sun  being  very  treacher- 
ous. During  the  dry  seasons  the  days  are  hot  with  heavy  winds 
which  are  charged  with  dust.  Many  experienced  travelers  prefer 
the  wet  months,  as  the  nights  are  usually  pleasant  and  the  mornings 
most  delightful,  while  engagements  can  be  made  quite  definitely  be- 
cause of  a  foreknowledge  of  the  rainfall  which  usually  begins  at 
a  certain  hour  daily. 

THE  SEASONS  IN  LATIN  AMERICA 

Argentina. — Northern  part.  Two  seasons  characterize  that  portion 
of  the  republic  lying  north  of  Bahia  Blanca ;  the  rainy  season 
from  October  to  March ;  the  dry  season  the  balance  of  the  year.  These 
are  more  marked  in  the  interior  than  along  the  Atlantic  Coast. 

Southern  part.  The  seasons  are  about  the  same  but  there  is  less 
rainfall  than  in  the  north,  and  it  is  far  more  evenly  distributed. 
Spring,  as  known  in  the  United  States,  begins  in  Buenos  Aires, 
September  23 ;  summer,  December  21 ;  autumn,  March  20 ;  winter, 
June  21. 

Bolivia. — In  the  temperate  belt,  including  the  western  plateau  and 
the  Cochabamba  plateau,  there  are  four  seasons — spring  from  Septem- 
ber to  November;  summer,  December  to  February;  autumn,  March 
to  May;  winter,  June  to  August.  In  the  other  portions  of  the 
republic  there  is  not  much  change  during  the  year.  In  the  extreme 
elevations  it  is  always  cold;  in  the  lowlands,  hot.  The  seasons 
are  better  known  as  the  wet  and  dry,  the  wet  occurring  from  Decem- 
ber to  May,  the  dry  the  balance  of  the  year. 

Brazil. — There  are  two  seasons,  wet  and  dry.     The  latitude  deter- 

390 


APPENDIX  391 

mines  the  opening  of  the  seasons,  beginning  much  earlier  in  the 
south  than  in  the  north.  The  rainy  season  is  as  follows:  between 
Rio  Grande  do  Sul  to  Sao  Paulo,  from  October  to  April;  in  Rio  de 
Janeiro,  November  to  May;  Pernambuco,  March  to  August;  Maran- 
hao,  December  to  June;  Para,  January  to  June.  Inland,  the  wet 
season  begins  later,  generally  continuing  from  December  to  May 
in  the  Amazon  Valley;  at  Manaos  the  heaviest  rainfall  is  between 
April  and  June. 

Chile. — Because  of  the  extreme  length  there  are  three  geographical 
divisions,  the  northern,  the  central,  and  the  southern,  which  influ- 
ence the  seasons.  In  the  extreme  north  there  is  almost  no  rain 
and  in  the  central  division  the  rainfall  is  moderate.  In  the  south 
the  rainfall  is  excessive.  The  seasons  in  Chile  are  the  reverse  of 
those  in  the  United  States,  winter  beginning  in  June  and  summer 
in  December. 

Colombia. — The  republic  of  Colombia  has  four  seasons,  two  wet  and 
two  dry.  The  wet  seasons  include  the  months  of  April,  May  and 
June,  and  October,  November,  and  December,  these  being  periods 
when  the  sun  is  at  its  highest.  The  dry  seasons  represent  the  inter- 
vening months.  This  applies  practically  to  the  entire  republic,  but 
particularly  to  the  interior  plateaus. 

Ecuador. — There  are  two  seasons,  the  dry  or  summer  from  June  to 
December,  the  wet  or  winter  from  December  to  May.  During  the 
summer  the  winds  are  hot  and  dry.  During  the  wet  the  heat  is 
intense,  but  there  are  heavy  storms  and  great  precipitation  at  night. 
This  applies,  of  course,  to  the  coast,  while  on  the  uplands,  especially 
Quito,  the  seasons  are  not  as  definitely  defined  as  at  the  seaboard. 

Paraguay. — There  are  four  seasons:  winter,  June,  July  and  Au- 
gust; spring,  September,  October  and  November;  summer,  Decem- 
ber, January  and  February;  autumn,  March,  April  and  May.  This 
applies  practically  to  the  entire  country.  During  the  summer  months 
the  rainfall  is  heaviest;  during  the  winter  it  is  less.  The  precipita- 
tion is  fairly  well  distributed  through  the  year. 

Peru. — There  are  two  fairly  well  marked  seasons — winter,  from 
March  to  October ;  summer,  November  to  April.  The  rainfall  differs 
greatly  in  the  three  sections  of  Peru.  The  coast  region  west  of  the 
mountains,  temperate;  the  plateaus  and  elevations,  dry  and  cold; 
the  forest  regions,  warm  and  moist.  During  the  summer  months 
in  the  plateau  regions  the  rainfall  is  comparatively  heavy.  The  rain- 
fall in  the  other  portions  of  the  country  varies  materially. 

Uruguay. — There  are  four  seasons :  winter,  June,  July  and  August ; 
spring,  September,  October  and  November;  summer,  December,  Janu- 
ary, February;  autumn,  March,  April,  May.    Because  of  its  latitude 


392  APPENDIX 

and  the  mildness  of  the  climate,  only  two  seasons  are  generally  recog- 
nized: the  cool  season,  from  May  to  October;  the  warm  season,  from 
November  to  April.  The  mean  annual  temperature  differs  only 
about  8  degrees.  During  the  summer  the  winds  which  prevail 
in  the  interior  blow  steadily;  during  the  cool  season  not  quite 
so  regularly.  On  the  seacoast  the  pamperos,  which  are  southwest 
winds,  blow  most  frequently  during  the  summer,  frequently  accom- 
panied by  heavy  downpours  of  rain. 

Venezuela. — There  are  two  well  recognized  seasons — the  dry  season, 
November  to  March;  the  rainy  season,  April  to  October.  In  the 
interior  the  rainy  season  is  longer  than  on  the  coast  where  it  is 
but  four  months  long,  May  to  August. 

Cuba. — There  are  two  seasons — the  dry  extending  from  November 
to  April;  the  wet  from  May  to  October  inclusive.  The  temi)erature 
during  the  wet  period  is  hotter  than  during  the  dry.  More  than 
two-thirds  of  the  rainfall  occurs  during  the  wet  i)eriod.  Storms 
are  more  frequent  during  the  autumn  than  at  any  other  time,  and 
especially  so  in  the  months  of  October  and  November.. 

Haiti. — There  are  two  seasons — wet  and  dry.  At  Port  au  Prince 
the  rainy  season  lasts  from  April  to  October.  In  other  portions 
of  Haiti  there  is  a  slight  variation,  but  the  rainfall  is  general 
throughout  the  island.  The  dry  season  is  from  November  to 
March  inclusive. 

Santo  Domingo. — The  seasons  are  practically  those  of  Haiti — wet 
and  dry.  The  rainy  season  begins  in  April  and  ends  in  October. 
The  dry  period  extends  from  November  to  March  inclusive.  The 
rainfall  is  quite  general. 

Central  America 

Costa  Rica. — There  is  a  wide  difference  in  seasons  in  the  different 
parts  of  Costa  Rica  because  of  the  configuration  of  the  republic. 
On  the  Pacific  Slope  the  wet  season  may  be  said  to  last  from  April 
to  December.  During  June  there  is  a  curious  phenomenon — a  ten- 
day  dry  period.  Towards  the  Atlantic  Coast  the  rain  occurs  during 
the  dry  months.  The  dry  season  or  winter,  in  Costa  Rica,  lasts  from 
December  to  February. 

Nicaragua. — There  are  two  seasons — wet  and  dry.  The  wet  in- 
cludes the  months  from  May  to  November  inclusive.  This  applies  to 
the  Pacific  Coast.  In  the  district  influenced  by  the  Caribbean,  the 
wet  season  extends  from  June  to  December.  The  dry  season  lasts 
during  the  balance  of  the  year,  January  to  May. 

Honduras. — There  are  two  seasons — wet  and  dry.     The  wet  lasts 


APPENDIX  393 

from  May  to  November,  the  dry  from  November  to  May.  The  great- 
est rainfall  is  along  the  coast  where  the  temperature  is  most 
oppressive. 

Salvador. — There  are  two  seasons — the  wet  or  winter,  and  the 
dry  or  summer.  The  rainy  season  extends  from  May  to  October, 
the  dry  from  November  to  April.  During  July  and  August  there 
are  high  winds.  During  September  and  October  the  rain  is  con- 
tinuous, although  not  very  heavy. 

Guatemala. — There  are  two  seasons — the  rainy  and  the  dry.  The 
first  begins,  in  the  interior,  in  May  and  extends  to  October.  On  the 
coast  it  sometimes  lasts  until  December.  The  dry  period  lasts 
from  November  to  April. 

Panama. — There  are  two  seasons — the  wet  and  the  dry.  The 
wet  lasts  from  April  to  December  15,  the  dry  from  December  15  to 
April  1.  Eighty-five  per  cent,  of  the  rainfall  occurs  during  the  wet 
season.     During  the  other  period  it  is  fairly  dry  and  dusty. 

Mexico. — Because  of  the  configuration  of  the  country,  there  is  no 
marked  seasonal  division.  Generally  speaking,  there  is  a  rainy  and 
a  dry  season.  The  rainy  season  generally  begins  in  June  and  lasts 
until  October.  The  rain  is  not  continuous.  It  usually  begins  late  in 
the  afternoon,  falls  for  several  hours,  and  then  the  atmosphere 
becomes  clear.  In  some  portions  of  the  republic  rain  occurs  during 
the  dry  season.  Along  the  coasts,  especially  the  southern  Gulf  shore, 
there  is  a  second  rainy  season  during  January  and  February.  In 
other  places  along  the  Gulf  coast  and  slopes  which  face  the  coast,  it 
is  never  entirely  dry. 


A  DETAILED  DESCRIPTION  OF  THE  LATIN  AMERICAN 
REPUBLICS  FROM  THE  COMMERCIAL  STANDPOINT 

INTRODUCTION 

The  following  brief  summary  of  conditions  in  the  various  republics 
of  Latin  America  will  be  found  useful  to  the  reader.  The  resume  of 
the  foreign  commerce,  the  debt,  railways,  etc.,  afford  means  of  an  in- 
teresting   comparison    between    the    various    countries. 

THE  REPUBLIC  OF  ARGENTINA 

Language. — Spanish.  Newspapers  are  published  in  Buenos  Aires  in 
Spanish,  French,  German,  Italian,  and  English. 

Currency. — Gold  peso — 100  centavos:rr$0.965.  Paper  peso  is  con- 
vertible at  44  per  cent  of  its  face  value,  making  it  worth  $0.4246.    The 


394 


APPENDIX 


gold  peso  is  designated  by  the  sign  $o/s,  the  o/s  standing  for  oro 
sellado  (coined  gold).  The  paper  peso  is  designated  by  $c/l  or 
$m/n,  the  c/1  standing  for  curso  legal  (legal  tender)  and  m/n  for 
moneda  nacional  (national  money).  Sometimes  the  abbreviations 
o/s,  c/1  and  m/n  are  placed  before  the  $,  as  o/s$,  or  they  may 
follow  the  figures,  as  $500  o/s. 

WeigJits  and  Measures. — Metric  system. 

Postage. — Postal  Union  rates.  No  parcel  post  arrangement  with 
United  States. 


Area  Square  Miles 


Population 


Population  Per  Square  Mile 


1,139,196 


8,700,000 


7.64 


Year 


Foreign  Commerce 
Total  Imports  Imports  from  United  States  Total  Exports    Exports  to  United  States 


1912 


Dollars 
406,805,000 


Dollars 
59,862,000 


Per  Cent. 
14.7 


Dollars 
466,582,000 


Dollars 
22,093,000 


Per  Cent. 
4.7 


Imports 


Exports 


Per  Capita 
Revenue       Expenditure 


Debt 


Interest 


Dollars 
46.76 

Dollars             Dollars 
53.63               20.65 

Dollars 
20.70 

Dollars 
84.18 

Dollars 
4.12 

Length  of  Railways 

Telegraphs 

Railroads 

Telegraphs 

Date 


Miles       Date 


Miles 

of 
Line 


Miles 

of 
Wire 


Per  10,000 
Inhabit- 
ants 


Per  1,000 
Square 
Miles 


Length 
of  Line 
per  10,000 
Inhabit- 
ants 


Length 
of  Wire 
per  10,000 
Inhabit- 
ants 


1914        21,909       1913       45,272     142,104         25.2 


19.2 


52.0 


163.3 


Year 


Revenue  and  Expenditure 

Revenue  E.Kpenditure 


Funded 


Dollars  Dollars 

1914                 179,637,000  180,091,000 

Debt 

Unfunded,  Including  Total 

Floating  Non-interest-  in  U.  S. 

bearing,  Etc.  Currency 


Rates     Interest  and 
of       Other  Annual 
Interest       Charges 


Currency  Amount  Currency  Amount  Dollars       Per  Cent.         Dollars 

£  SterUng 135,260,000     Pesos,  gold  3,095,000     732,398,000       4-6  35,818,000 

Pesos,  paper     167,619,000 


Location,  Area,  Physical  Characteristics. — The  Republic  of  Argen- 
tina is  in  size  the  third  largest  of  the  American  republics.  It  is 
bounded  on  the  north  by  Bolivia  and  Paraguay,  on  the  east  by  Brazil, 
Uruguay  and  the  Atlantic  Ocean,  on  the  west  by  Chile.  Because  of  its 
great  length,  about  2200  miles,  its  climate  and  products  range  from 
the  tropical  to  the  arctic.     The  area  is  about  1,139,400  square  miles, 


APPENDIX  395 

The  physical  characteristics  of  the  country  are  generally  vast  plains. 
The  western  part  of  the  republic  is  broken  by  the  Andes  Moun- 
tains with  numerous  gigantic  peaks.  There  are  also  many  very 
fertile  valleys  which  afford  splendid  grazing.  The  river  system  is 
extensive  with  1000  miles  of  waterways.  The  climate  varies  greatly, 
the  northern  part  of  the  country  being  hot  and  moist.  The  extreme 
southern  regions  are  very  cold,  the  eastern  regions  are  temperate, 
while  in  the  west  the  temperature  varies  according  to  altitude.  The 
mean  annual  temperature  of  Buenos  Aires  is  61  degrees,  ranging 
between  28  and  103  degrees.  In  the  northern  part  the  temperature 
often  reaches  190  degrees,  while  in  Tierra  del  Fuego  the  mean  tem- 
perature is  about  42  degrees. 

Population. — The  population  of  Argentina  (estimated  1911)  is 
7,200,000.  The  largest  percentage  of  the  native  population  consists  of 
the  mixed  or  Mestizo.  There  are  about  30,000  pure  Indians.  Among 
the  foreigners  the  Italians  predominate,  with  the  Spaniards  a  close 
second,  and  there  are  many  thousand  French,  Russians,  Servians, 
Austrians,  Germans,  English,  and  Brazilians. 

Purchasing  Power. — The  purchasing  power  of  Argentina  has  been 
rapidly  increasing.  As  the  exports  are  large  and  the  country  ex- 
tremely productive,  opportunities  exist  for  American  manufacturers 
in  the  supplying  of  practically  every  variety  of  merchandise  and 
manufactures  which  can  be  sold  in  the  United  States.  The  range 
of  prices  and  qualities  is  very  large. 

Railroads  and  Transportation. — Argentina  is  well  served  by  rail- 
roads but  especially  in  the  central  portion.  The  total  number  of 
miles  is  about  21,000,  of  which  3,100  are  owned  by  the  State,  the 
balance  by  private  corporations.  The  miles  of  roads  of  broad 
gauge  are  13,000,  standard  gauge  1,700,  narrow  gauge  6,300.  There 
are  numerous  steamship  lines  to  the  principal  ports  and  an  ex- 
cellent river  steamship  service  into  Uruguay,  Paraguay,  and  west- 
em  Brazil. 

Resources. — The  chief  resources  of  Argentina  are  agricultural  and 
the  exports  consist  principally  of  food  products.  In  1914  the  exports 
totaled  $470,000,000.  Of  agricultural  products,  com  amounted  to 
$109,000,000,  wheat  and  flour  $107,000,000,  linseed  $48,000,000,  oats 
$20,000,000,  bran  $4,000,000.  Of  animal  products  the  total  was 
$166,000,000,  of  which  beef  and  mutton  amounted  to  $42,000,000,  wool 
$45,000,000,  hides  and  skins  $43,000,000,  miscellaneous  animal  prod- 
ucts $6,000,000,  tallow  and  grease  $10,000,000,  manufactured  prod- 
ucts $8,000,000,  live  stock  $10,000,000,  forest  products  $10,000,000, 
consisting  mainly  of  quebracho  logs  and  extracts. 

Industries. — While   Argentina    is   noted   for    its    agricultural    re- 


396  APPENDIX 

sources,  the  number  of  industrial  establishments  has  increased  in 
fifteen  years  about  33  per  cent.  The  principal  industries  are  boot 
and  shoe  factories,  saw  mills,  brick,  tile,  and  cement  factories,  manu- 
factures of  iron  products,  meat  refrigerators  (frigorificos),  forestal 
manufactures.  The  most  important  industry  is  that  of  the  chilled 
meat  establislunents.  The  manufacture  of  dairy  products  is  also 
increasing  but  the  republic  is  essentially  agricultural,  not  manu- 
facturing. 

Mining. — The  mining  development  of  Argentina  has  not  been 
important  although  mineral  deposits  have  been  found  in  the  Andes 
Mountains,  and  oil  has  also  been  discovered  in  the  southern  part 
of  the  country. 

The  Principal  Cities. — The  principal  cities  of  Argentina  are  as 
follows :  Buenos  Aires,  population  1,439,518 ;  La  Plata,  population 
106,382,  30  miles  southeast  of  Buenos  Aires;  Bahia  Blanca,  72,706, 
530  miles  by  sea  southeast  of  Buenos  Aires;  Rosario,  214,000,  214 
miles  northwest  of  Buenos  Aires;  Cordoba,  100,000,  432  miles  north- 
west of  Buenos  Aires;  Tucuman,  78,965,  720  miles  northwest  of 
Buenos  Aires;  Mendoza,  60,000,  647  miles  west  of  Buenos  Aires; 
Santa  Fe,  48,600,  299  miles  northwest  of  Buenos  Aires;  Salta, 
40,000,  996  miles  northwest  of  Buenos  Aires ;  Jujuy,  20,000,  1006  miles 
northwest  of  Buenos  Aires;  San  Juan,  15,000,  745  miles  northwest  of 
Buenos  Aires;  San  Luis,  14,000,  485  miles  west  of  Buenos  Aires. 

The  Best  Method  of  Canvassing  the  Republic. — For  commercial 
purposes,  the  republic  must  be  divided  into  several  zones.  While 
Buenos  Aires  naturally  overshadows  all  the  rest  of  the  republic  and  is 
also  the  largest  city  in  South  America,  there  are  many  other  important 
business  places.  The  first  city  to  be  visited  is,  of  course,  Buenos 
Aires  and  the  manufacturer  who  seeks  to  establish  relations  in 
Argentina  will  find  it  most  advantageous  to  make  this  a  basic 
point.  From  Buenos  Aires  trips  can  be  made  to  the  southeast. 
La  Plata  and  Bahia  Blanca;  and  to  the  northwest  (via  Rosario), 
Santa  Fe,  Tucuman,  Cordoba,  and  Mendoza.  When  the  obtaining 
of  business  depends  upon  local  agencies  these  may  be  advantageously 
established  as  follows :  Buenos  Aires,  Bahia  Blanca,  Rosario,  Cordoba, 
Tucuman,  and  Mendoza.  These  are  the  most  important  strategic 
points,  and  not  only  the  business  interests  of  the  merchants  in  the 
cities  mentioned,  but  in  the  adjacent  territory,  can  best  be  served. 

Articles  Most  Needed. — One  of  the  chief  opportunities  for  Ameri- 
can manufactures  in  Argentina  is  the  sale  of  those  products  which 
in  the  past  have  been  bought  largely  in  Europe  but  particularly  in 
Germany,  Austria,  and  Belgium.  Among  the  more  important 
products  which  are  salable   in  Argentina  are  the  following:  beer, 


APPENDIX 


397 


hardware,  cutlery,  tools,  seed,  electrical  apparatus,  dynamos,  but- 
tons, toilet  articles,  chemicals,  safety  matches,  ties,  paper,  woolen 
manufactures,  paint  and  oils,  autos,  iron  beams,  book  paper,  cotton 
hose,  iron  and  steel,  wire  iron  parts,  machinery,  earthenware,  glass- 
ware, stoneware,  galvanized  pipes,  steel  rails,  watches. 


ARGENTINA 

Foreign  Commerce  in  Values 
Imports 


Exports 


Total 


1912 $373,307,865  $465,979,518  $839,287,383 

1913 408,711,966  468,999,410  877,711,376 

1914 263,663,363  338,776,517  602,439,880 


Distribution  of  Foreign  Trade  (four  principal  commercial  countries) 


Imports 


Per  cent. 
of  whole 


Exports 


Per  cent, 
of  whole 


1913 

United  Kingdom $126,959,989 

Germany 69,172,279 

United  States 60,171,867 

France 36,933,537 

1914 

United  Kingdom 89,700,441 

Germany 38,796,249 

United  States 35,585,913 

France 21,721,747 


31.1 
16.9 
14.7 
9.0 


34  0 

14.8 

13.4 

8.2 


$116,756,777 
56,178,368 
22,207,965 
36,586,981 


99,084,941 
29,809,479 
41,680,985 
19,372,480 


24.9 

12.0 

3.0 

1.2 


29.2 


12.3 
5.7 


THE  REPUBLIC  OF  BOLIVIA 

Language. — The  laws  and  official  records  of  Bolivia  are  kept  in 
Spanish  and  it  is  the  language  of  the  educated  people  and  polite 
society,  as  well  as  the  business  classes. 

Currency. — Boliviano  r-lOO   centavos=::$0.389. 

Weights  and  Measures. — Metric  system  has  been  adopted.  Old 
Spanish  weights  and  measures  are  commonly  used  in  the  retail  trade, 
among  them  being  the  vara,  32.91  inches;  quintal,  101  pounds;  and 
arroba,  25.36  pounds. 

Postage. — Postal  Union  rates.     Parcel  post  with  United  States. 


1913 


Area  Square  Miles 


Population 


Population  Per  Square  Mile 


708,195 


2,268,000 


3.20 


Foreign  Commerce 
Year       Total  Imports  Imports  from  United  States  Total  Exports    Exports  to  United  States 


Dollars 
21,358,000 


Dollars 
1,900,000 


Per  Cent. 
8.9 


Dollars 
36,551,000 


Dollars 
218,000 


Per  Cent. 
6 


Imports 


Exports 


Per  Capita 
Revenue       Expenditure 


Debt 


Interest 


Dollars 
9.42 


Dollars 
16.12 


Dollars 
3.70 


Dollars 
4.23 


Dollars 
8.54 


Dollars 
.74 


398 

APPENDIX 

Length  of  Railways 

Telegraphs 

Railroads 

Telegraphs 

Length          Length 

Miles       Miles 

Per  10,000     Per  1,000 

of  Line          of  Wire 

Date         Miles       Date 

of             of 

Inhabit-          Square 

per  10,000     per  10,000 

Line        Wire 

ants              Miles 

Inhabit-         Inhabit- 
ants              ants 

1913 


895 


1912    3,811    5,562 


3.9 


1.3 


16.8 


24.5 


Revenue  and  Expenditure 
Year  Revenue  Expenditure 


Funded 


Dollars 

Dollars 

1914 

8,392,000 
Debt 

9,589,000 

Unfunded,  Including 

Total 

Rates     Interest  and 

Floating  Non-Interest- 

in  U.  S. 

of       Other  Annual 

bearing.  Etc. 

Currency- 

Interest       Charges 

Currency  Amount  Currency  Amount  Dollars       Per  Cent.       Dollars 

Bolivianos 41,650,000     Bolivianos...     8,101,000        19,369,000        3-10         1,688,000 


Location  and  Area. — The  republic  of  Bolivia  is  the  third  largest 
of  the  South  American  countries.  The  area  is  about  708,000  square 
miles.  It  is  bounded  on  the  north  and  east  by  Brazil,  on  the  south 
by  Paraguay,  the  Argentine  Republic,  and  Chile,  and  on  the  west 
by  Chile  and  Peru. 

Physical  Characteristics. — The  chief  physical  characteristics  of 
Bolivia  are  the  mountain  ranges  of  the  Andes,  the  high  tableland 
or  plateau,  as  it  is  known,  while  in  the  eastern  part  there  are  vast 
forests  and  grassy  plains.  Because  of  the  location  and  varying 
altitudes,  there  are  many  climates,  ranging  from  the  hot  lowlands  in 
the  eastern  section  to  the  temperate  plateau  regions  and  the  colder 
regions  at  all  the  elevations  in  excess  of  13,000  feet.  The  tempera- 
ture in  the  temperate  region  averages  fifty -five  degrees  while  in  the 
lowlands  the  temperature  is  that  of  the  tropics.  The  district  in 
which  is  located  the  city  of  Cochabamba  has  the  most  pleasant  cli- 
mate. 

Population. — The  population  of  Bolivia,  estimate  of  1915,  is  about 
2,270,000  or  about  3.20  to  the  square  mile.  The  inhabitants  consist 
largely  of  Mestizos,  although  there  are  several  hundreds  of  thousands 
uncivilized  Indians.  The  number  of  higher  classes  is  in  the  neighbor- 
hood of  700,000. 

Purchasing  Power. — The  upper  classes  in  Bolivia  are  limited  in 
number,  but  the  importations  are  relatively  high  and  the  wealth  of 
the  country  is  increasing.  Although  the  requirements  of  the  lower 
classes  are  not  great,  the  total  of  staple  imports  is  large.  Because 
of  the  exploitatipns  of  the  mineral  wealth  and  the  developmeut  of 


APPENDIX  39& 

the  agricultural  resoixrces  of  the  country,  Bolivia  offers  a  promising 
field  for  American  manufacturers. 

Resources. — The  resources  of  Bolivia  are  chiefly  mineral,  but 
agriculture  is  receiving  increasingly  more  attention.  In  the  lowlands 
there  are  found  the  products  of  the  tropical  regions,  including  rubber, 
hard  wood,  tropical  fruits,  etc.  Among  the  chief  agricultural  prod- 
ucts of  Bolivia  may  be  cited  rubber,  cocoa,  cinchona  bark,  from  which 
is  made  quinine  and  coffee.  The  output  of  wool  is  on  the  increase  and 
cattle  raising  is  receiving  more  attention  in  the  pastures  of  the 
eastern  and  southern  parts  of  the  republic. 

Mining. — Bolivia  is  famous  for  its  output  of  silver,  tin,  and 
copper,  but  particularly  of  silver,  the  republic  being  one  of  the 
largest  producers  of  this  metal,  as  of  tin  also.  The  mines  of  Potosi 
have  been  famous  since  the  sixteenth  century  and  have  yielded  ore 
whose  value  is  in  excess  of  $3,000,000,000.  With  the  extension  of 
railroad  facilities,  the  wealth  of  the  republic  will  be  more  easily 
exploited,  as  it  is  now  greatly  hampered  because  of  the  difficulty  of 
access. 

Principal  Cities. — The  principal  cities  of  Bolivia  are  the  following : 
La  Paz,  population  78,856;  Sucre,  population  23,416,  385  miles  from 
La  Paz;  Cochabamba,  population  24,512,  279  miles  from  La  Paz; 
Oruro,  population  20,670,  152  miles  from  La  Paz;  Potosi,  population 
23,450,  90  miles  from  Sucre;  Santa  Cruz,  population  20,535,  694  miles 
from  La  Paz. 

Best  Method  of  Canvassing  the  Republic. — The  chief  center  of  busi- 
ness in  Bolivia  is  La  Paz,  which  has  a  population  of  about  78,000. 
Some  manufacturers  find  it  advantageous  to  make  sole  connections 
with  merchants  or  agents  there  and  allow  the  rest  of  the  country 
to  be  developed  from  that  point.  However,  the  commercial  traveler 
would  find  it  advantageous  to  visit  the  other  trade  centers,  especially 
Cochabamba,  Potosi,  and  Oruro.  The  republic  can  be  reached  via 
the  ports  of  Antofagasta,  Arica,  and  Mollendo,  and  many  travelers 
find  it  desirable  to  enter  the  country  at  Arica,  a  seaport,  via  Mollendo. 
The  chief  agricultural  center  of  the  republic  is  Cochabamba,  while 
Oruro,  Potosi,  and  Santa  Cruz  are  famous  chiefly  for  their  mines. 
If  local  agencies  are  the  most  effective  means  of  marketing  goods, 
they  should  be  established  in  each  of  the  cities,  owing  to  the  fact 
that  the  cities  are  located  at  such  distances  from  each  other.  Par- 
ticularly is  this  true  of  Santa  Cruz  which  is  almost  700  miles  from 
La  Paz. 

Railroads  and  Transportation. — Bolivia  has  three  lines  of  railways 
from  the  Pacific  coast  ports  of  Chile  and  Peru.  These  routes  are 
as  follows:  (1)  From  Mollendo  to  Puno,  Peru,  thence  via  Lake  Ti- 


400  APPENDIX 

ticaca  to  Guagui,  Bolivia,  thence  to  La  Paz,  distance  525  miles;  (2) 
from  Arica,  Chile,  to  La  Paz  direct,  274  miles;  (3)  from  Antofa- 
gasta,  Chile,  to  Oruro,  Bolivia,  thence  connections  with  La  Paz 
and  other  places,  790  miles. 

Industries. — The  industries  of  Bolivia  are  unimportant,  being 
confined  principally  to  the  manufacture  of  articles  for  home  consump- 
tion. These  include  the  production  of  cheap  clothing,  sugar,  chocolate, 
soap,  etc. 

Articles  Now  Needed. — An  analysis  of  Bolivian  imports  indicates 
that  Germany  and  the  United  Kingdom  have  dominated  Bolivian 
trade.  As  the  imports  from  Germany  in  1913  were  over  $7,000,000 
and  those  from  the  United  Kingdom  almost  $4,000,000,  against  less 
than  $2,000,000  from  the  United  States,  the  opportunities  are  self- 
evident.  American  manufacturers  and  exporters  may  find  it  very 
advantageous  to  lay  the  foundation  now  for  the  sale  of  goods  to 
take  the  place  of  those  heretofore  bought  in  Europe,  particularly 
from  Germany.  The  principal  articles  for  which  opportunities  exist 
are  the  following :  arms  and  ammunition,  rice,  candles,  cement,  manu- 
factures of  cotton  including  piece  goods,  etc.,  powder  and  explosives, 
hats,  hardware,  barbed  wire,  dyes  and  chemicals,  jewelry,  drugs, 
pharmaceutical  products,  paper  and  cardboard,  wearing  apparel, 
canned  meats  and  vegetables,  beer,  earthenware,  chinaware,  house- 
hold utensils,  leather,  electrical  materials,  ink,  combs,  musical  in- 
struments, machinery,  fancy  goods,  paints,  matches,  stationery. 

Foreign  Commerce  in  Values 

Imports  Exports  Total 

1911 •. 822,764,849  $32,226,157  $.54,991,006 

1912 92,308,506  35,147,905  54,456,471 

1913 21,357,505  36,551,390  57,908,895 

Distribution  of  Foreign  Trade  (four  principal  comm,ercial  countries) 

Imports  Exports 

1912 

Germany $6,440,316  $4,368,301 

United  Kingdom 3,537,112  26,112,023 

United  States 1,791,911  152,976 

France 949,883  2,133,930 

1913 

Germany 7,000,000  3,109,758 

United  Kingdom 3,850,000  29,548,087 

United  States 1,900,000  218,195 

France 1,100,000  1,783,017 


Note. — The  classification  of  imports  for  1913  are  estimates.  None  of  the  Bolivian  fig- 
ures classifying  the  trade  by  countries  can  be  very  accurate  owing  to  the  fact  that  the  entire 
foreign  trade  is  carried  on  through  adjacent  oountriea  and  0ODse<jiuently  oaunot  always  be 
differentiated  as  to  origin  and  destination. 


APPENDIX 


401 


THE  REPUBLIC  OP  BRAZIL 

Language. — Portuguese;  German  and  Italian  are  also  spoken  in 
some   settlements. 

Currency. — Gold  milreis — 1,000  reis=$0.546.  Actual  currency  is 
paper,  the  exchange  value  of  which  in  January,  1914,  was  $0.3242. 
A  cantos  is  1,000  milreis.  In  expressing  sums  in  jnilreis  and  reis 
the  $  is  used  in  practically  the  same  manner  as  a  period.  Thus  the 
sum  125  milreis  225  reis  is  written  125$225;  again  125  milreis  is 
written   125$   or  125$000. 

Weights  and  Measures. — Metric  is  legal  systerri.  Of  the  old  Portu- 
guese weights  and  measures  still  used  occasionally,  libra^l.012 
pounds,  and  arroba=:32.38  pounds. 

Postage. — Postal  Union  rates.  Parcel  post  arrangement  with  the 
United  States. 

Area. — 3,292,000  square  miles. 

Population.— 24:,000,Q<dO. 

Capital. — Rio  de  Janeiro;  population  1,500,000. 


Area  Square  Miles 


Population 


Population  Per  Square  Mile 


3,292,000 


24,000,000 


7.39 


Foreign  Commerce 

Year       Total  Imports  Imports  from  United  States  Total  Exports    Exports  to  United  States 
Dollars  Dollars         Per  Cent.  Dollars  Dollars         Per  Cent. 


1913 


326,865,000   51,358,000 


15.7 


315,856,000       102,700,000 


32.5 


Imports 


Exports 


Per  Capita 
Revenue       Expenditure 


Debt 


Interest 


Dollars 
13.45 


Dollars 
12.98 


Dollars 
7.93 


Dollars 
7.88 


Dollars 
42.22 


Dollars 
1.65 


Length  of  Railways 


Telegraphs 


Railroads 


Telegraphs 


Length  Length 

Miles       Miles      Per  10,000     Per  1,000         of  Line  of  Wire 

of              of           Inhabit-          Square        per  10,000  per  10,000 
Line         Wire            ants               Miles.          Inhabit-  Inhabit- 
ants ants 


Date         Miles       Date 


1914         15,279        1912      '36,199      73,124 


4.6 


14.9 


30.1 


Year 


Revenue  and  Expenditure 

Revenue  Expenditure 


1914 


Dollars 
192,729,000 


Dollars 
191,656,000 


402  APPENDIX 

Debt 

Unfunded,  Including                Total  Rates     Interest  and 

Funded                          Floating  Non-interest-  in  U.  S.  of       Other  Annual 

bearing,  Etc.  Currency  Interest       Charges 

Currency            Amount           Currency           Amount  Dollars  Per  Cent.       Dollars 

£  SterUng 91,609,000     £  Sterling ..  .       2,000,000  1,026,312,000      4-6         40,121,000 

Francs 299,032,000     Francs 278,502,000 

Milreis,  paper. .  701,383,000     Milreis,  paper  601,488,000 

Location. — The  republic  of  the  United  States  of  Brazil  lies  prac- 
tically within  the  Southern  Hemisphere,  extending  on  both  sides  of 
the  Equator,  from  the  Torrid  Zone  into  the  South  Temperate  Zone. 
It  is  bounded  on  the  north  by  British,  French,  and  Dutch  Guiana, 
Venezuela,  and  Colombia;  on  the  west  by  Ecuador,  Peru,  Bolivia, 
Paraguay,  Argentina  and  Uruguay;  on  the  east  and  south  by  the 
Atlantic  Ocean. 

Area  and  Physical  Characteristics. — The  area  of  Brazil  is  3,292,000 
square  miles,  about  200,000  square  miles  larger  than  the  United  States. 
It  comprises  over  40  per  cent,  of  aU  South  America.  Its  extreme 
length  is  2,630  miles,  its  width  2,540  miles.  Brazil  consists  largely 
of  rolling  uplands  and  tablelands,  some  of  which  are  very  high. 
There  are  numerous  mountain  chains  and  a  vast  system  of  rivers. 

Climate. — Every  possible  climate  is  represented,  from  the  extremely 
torrid  to  the  temperate,  and  the  climatic  conditions  are  effected 
materially  by  altitudes.  In  most  parts  of  Brazil  the  climate  is  warm 
and  moist.  In  the  tropical  division,  the  mean  annual  temperature  is 
about  80  degrees  Fahrenheit.  In  the  semi-temperate  division,  which 
includes  the  mountainous  parts  of  Brazil,  the  mean  temperature 
averages  65  degrees.  The  rainfall  varies  materially  and  occurs  in 
periods  which  are  much  dependent  upon  latitudes;  thus  in  Para,  the 
annual  rainfall  is  20  inches  with  291  days  of  rain;  Rio  de  Janeiro, 
43  inches,  with  127  days  of  rain;  Santos,  981/2  inches,  etc.  The  wet 
and  dry  seasons  are  materially  different  and  are  dependent  upon 
latitude. 

Population. — Brazil  has  a  population  of  24,000,000  or  about  7.4  to 
the  square  mile.    The  population  consists  largely  of  four  classes: 

1st.  White. 

2nd.  Mixed  whites,  of  which  a  large  percentage  are  whites. 

3rd.  Half-breeds,  Indian  and  Negro  blood. 

4th.  Negros  and  Indians. 

The  white  population  is  descended  from  the  Portuguese  and  there 
are  large  colonies  of  Germans  and  Italians,  particularly  in  che  states 
of  Rio  Grande  and  Sao  Paulo.  As  immigration  has  been  greatly 
encouraged,  the  number  of  immigrants  from  Europe  until  the 
outbreak  of  the  European  War  was  very  large,  principally  Portuguese. 


APPENDIX  403 

Italian,  German,  Spanish,  Russian,  etc.  English  and  French  resi- 
dents are  found  in  all  the  larger  cities  and  the  business  of  Brazil 
is  greatly  affected  by  this  European  influx. 

Purchasing  Power  of  the  Different  Classes. — The  republic  of  Brazil 
has  a  high  per  capita  purchasing  power  and  importations  from  the 
United  States  are  rapidly  increasing.  The  staple  necessities  of  the 
lower  classes  are  an  important  item  in  the  importations,  while  the 
increasing  wealth  of  the  growing  upper  class  opens  a  rapidly  de- 
veloping field.  The  requirements  of  the  white  Brazilian  and  Euro- 
pean population  are  those  of  the  wealthiest  nations  and  not  only 
articles  of  common  use  but  also  luxuries  of  all  sorts  are  in  demand. 
Brazil  is  being  developed  from  the  agricultural  as  well  as  other  stand- 
points, and  the  enormous  wealth  already  existing  in  many  portions 
of  the  country  insures  large  sales  of  American  products. 

Chief  Resources. — The  great  wealth  of  Brazil  is  largely  due  to  its 
two  chief  products,  coffee  and  rubber,  which  make  up  about  85 
per  cent,  of  its  exports.  Besides  these,  many  other  agricultural 
products  are  produced,  including  sugar,  Paraguay  tea,  nuts,  tobacco, 
cotton,  etc.  The  coffee  industry  is  especially  important  and  rubber 
is  a  close  second.  The  efforts  of  the  Brazilian  Government  to  insure 
a  diversity  of  crops  opens  vast  opportunities  for  American  manu- 
facturers in  the  sale  of  agricultural  machinery  suitable  for  their 
cultivation. 

Other  Resources. — The  raising  of  cattle  whose  hides  and  skins  are 
exported,  the  exploitation  of  the  forests  which  produce  mahogany, 
ebony,  and  other  hard  woods,  the  cultivation  of  plants  which  furnish 
fibers,  the  growth  of  tropical  fruits,  the  gathering  of  medicinal 
plants,  dye  woods,  etc.,  the  raising  of  grapes  for  wines,  etc.,  all 
contribute  to  the  wealth  of  Brazil.  Because  of  its  vast  area,  the 
individual  states  and  centers  require  study. 

Mining. — Brazil  is  one  of  the  very  richest  countries  of  the 
world  in  ores,  with  almost  every  kind  of  minerals.  Valuable  deposits 
of  iron  ore,  zinc,  lead,  tin,  copper,  graphite,  manganese,  diamonds, 
etc.,  are  found  and  are  gradually  being  exploited,  although  they  are 
still  in  a  primitive  state,  owing  to  lack  of  capital  and  transportation 
facilities. 

Industries. — The  raising  of  live  stock  is  being  encouraged  while 
lumbering  is  likewise  receiving  increasing  attention.  All  articles 
useful  in  these  industries  can  be  sold. 

Factories  and  Mills. — The  number  of  factories  in  the  more  progres- 
sive states  of  Brazil  is  already  large  and  their  investments  approxi- 
mnte  several  millions  of  dollars.  These  are  principally  flour  mills, 
breweries,  enamel  factories,  iron  foundries,  electric  light  plants,  etc. 


404  APPENDIX 

Great  opportunities  are  afforded  in  the  sale  of  machinery,  equipment, 
and  supplies  suitable  for  such  industries. 

Principal  Cities. — The  principal  cities  of  Brazil  are  Bahia,  popu- 
lation 300,000,  Manaos  50,000,  Para  200,000,  Paramaribo  125,000, 
Porto  Ale^e  100,000,  Eio  de  Janeiro  1,200,000,  Sao  Paulo  450,000, 
Nichteroy  35,000,  Eio  Grande  do  Sul  25,000,  Santos  40,000,  Victoria 
25,000,  Ceara  35,000,  Maceio  30,000,  Parahiba  35,000,  Sao  Luiz 
35,000. 

Best  Method  of  Canvassing  the  Republic. — The  republic  of  Brazil 
covers  such  a  vast  area  that  several  distinct  territories  are  absolutely 
essential  in  case  it  is  decided  to  establish  local  agencies.  No  general 
agency  for  Brazil  should  be  granted  unless  the  house  accepting  it 
possesses  a  traveling  organization  capable  of  reaching  all  districts. 
As  it  takes  over  three  weeks  to  make  the  journey  from  Rio  de  Janeiro 
to  Manaos  on  the  Amazon,  the  latter  is  obviously  not  a  city  to  be  in- 
cluded in  the  territory  of  an  agency  established  at  Rio.  Naturally 
the  capital,  Rio  de  Janeiro,  is  the  most  important  city  strategically 
from  a  commercial  standpoint.  Before  reaching  it,  however,  the 
traveler  from  New  York  will  touch  at  Para  where  an  enormous 
business  is  being  done  and  which  is  the  headquarters  for  northern 
Brazil. 

The  city  and  the  port  of  Maranham  may  be  included  in  the  terri- 
tory of  the  agent  at  Para  and  the  traveler  with  a  limited  time  may 
omit  it,  but  Pemambuco  should  invariably  be  visited  because  of  its 
great  importance  from  the  commercial  standpoint.  Bahia,  which 
is  800  miles  from  Rio  de  Janeiro,  with  a  considerable  population, 
should  likewise  be  included  in  the  itinerary  of  the  commercial  rep- 
resentative, being  the  last  important  port  before  Rio.  In  southern 
Brazil  the  ports  of  Rio  Grande  do  Sul  and  Porto  Alegre  are  also 
important.  In  case  it  is  desired  to  cover  the  countries  thoroughly, 
the  other  cities  mentioned  above  may  be  visited  advantageously. 
Very  frequently  the  time  required  to  establish  direct  relations  with 
the  merchants  of  smaller  communities  is  well  spent,  instead  of 
depending  upon  the  importers  of  the  larger  places.  Whether  the 
small  places  are  visited  depends  upon  the  arrangements  made  with 
the  dealers,  but  the  importance  of  not  granting  an  agency  for  the 
whole  of  Brazil  to  a  concern  in  Rio  de  Janeiro  must  be  stressed. 
There  are  some  importers  in  the  growing  cities  in  the  states  of 
Minas  Geraes  and  Sao  Paulo,  which  may  be  made  advantageously 
from  Rio.  The  merchants  of  the  more  important  communities  are 
listed  in  the  trade  directories  published  by  the  Bureau  of  Foreign 
and  Domestic  Commerce. 

Articles  Most  Needed  hy  Bro^zil, — Almost  all  articles  which  can 


APPENDIX  405 

be  sold  in  the  United  States  are  salable  in  Brazil.    The  opportunities 
are  greater  than  ever  before,  because  of  the  European  War. 

Transportation  Facilities. — For  transportation  the  republic  of  Brazil 
is  dependent,  in  large  measure,  upon  its  rivers  and  important  lines 
of  coasting  ships.  The  railway  systems  already  represent  160,000 
miles,  of  which  the  government  owns  about  12  per  cent,  and  state 
governments  25  per  cent.;  the  balance  is  owned  by  private  corpora- 
tions. With  the  development  of  the  mineral  and  agricultural  re- 
sources of  the  country,  the  railroads  will  naturally  be  greatly 
extended. 

Foreign  Commerce  of  Brazil  in  Values 

Imports  Exports  Total 

1911 $257,164,128      $325,271,614      $582,435,742 

1912 308,243,736        362,794,846        671,038,582 

1913 326,428,509        315,164,68^        641,593,196 

Distribution  of  Foreign  Trade  (Jour  principal  commercial  countries) 

1912 

Imports  Exports 

United  Kingdom $77,615,548  $43,065,547 

Germany 53,018,079  51,928,195 

United  States 48,109,316  141,914,885 

France 27,751,094  35,514,990 

1913 

United  Kingdom $79,881,000  $41,701,815 

Germany 57,043,754  44,392,410 

United  States 51,289,682  38,685,561 


THE  REPUBLIC  OF  CHILE 

Language. — Spanish. 

Currency. — Gold  peso — 100  centavos^$0.365.  Actual  currency  is 
paper  money  that  fluctuates  in  value,  the  exchange  rate  of  the  paper 
peso  on  January  1,  1914,  being  approximately  $0.2061.  The  mark  $ 
when  followed  by  the  word  oro  means  the  gold  peso ;  if  followed  by 
the  abbreviation  m/c,  for  moneda  corriente,  it  means  the  paper  peso. 
The  gold  peso  is  sometimes  designated  as  peso  of  18d.,  that  being 
its  value  in  terms  of  sterling. 

Weights  and  Measures. — The  metric  is  the  legal  system.  Among 
old  Spanish  weights  and  measures  still  used  are  vara=rr32.91  inches; 
quintal:=101.41  pounds. 


406 


APPENDIX 


Postage. — Postal  Union  rates.     Parcel  post  arrangement  with  the 
United   States. 

Area. — 292,100  square  miles. 

Population.— ^fiOQfiOO. 

Capital. — Santiago;  population  500,000. 


Area  Square  Miles 


Population 


Population  Per  Square  Mile 


292,100 


5,000,000 


U.85 


Year 


1913 


Foreign  Commerce 
Total  Imports  Imports  from  United  States  Total  Exports    Exports  to  United  States 
Dollars  Dollars  Per  Cent.  Dollars  Dollars  Per  Cent. 


120,274,000        20,089,000 


16.7 


144,653,000        30,418,000 


21.0 


Per  Capita 


Imports 

Exports          Revenue 

Expenditure 

Debt 

Interest 

Dollars 

Dollars             Dollars 

Dollars 

Dollars 

Dollars 

34.72 

41.76                23.61 

22.69 

59.96 

2.37 

Length  of  Railways 

Telegraphs 

Railroads 

Telegraphs 

Date         Miles        Date 


Miles 

Miles 

Per  10,000 

Per  1,000 

of 

of 

Inhabit- 

Square 

Line 

Wire 

ants 

Miles 

Length  Length 

of  Line  of  Wire 

per  10,000  per  10,000 
Inhabit-         Inhabit- 
ants ants 


1913 


3,958    1912   23,384   30,287 


11.4 


64.6 


87.4 


Revenue  and  Expenditure 
Year  Revenue  Expenditure 


Dollars 

Dollars 

1914 

81,801,000    ^ 
Debt 

78,604,000 

Unfunded,  Including 

Total 

Rates     Interest  and 

Funded 

Floating  Non-interest- 

in  U.  S. 

of       Other  Annual 

bearing,  Etc. 

Currency 

Interest       Charges 

Currency            Amount 

Currency           Amount 

Dollars 

Per  Cent.       Dollars 

£  Sterling 34,498,000 

Pesos,  paper.    181,204,000 

207,704,000 

41^-5        8,212,000 

Location. — The  republic  of  Chile  is  located  on  "the  west  coast  of 
South  America,  being  the  longest  and  narrowest  country  in  the 
world.  It  is  bounded  on  the  north  by  Peru  and  Bolivia,  on  the 
east  by  the  Argentine  Republic,  on  the  west  by  the  Pacific  Ocean. 

Area  and  Physical  Characteristics. — The  area  of  Chile  is  approxi- 
mately 305,000  square  miles,  with  a  coast  line  of  almost  3,000  miles 
and  an  average  width  of  about  90  miles.  The  chief  physical  char- 
acteristics are  the  two  mountain  chains  called  the  Cordillera  de  la 
Costa,  and  the  Andes,  which  traverse  the  country  from  north  to 
south.     Between  these  two  chains  lies  the  great  central  valley  which 


APPENDIX  407 

is  very  rich  from  the  agricultural  standpoint.  There  are  numerous 
streams,  although  comparatively  few  are  navigable.  There  are  a 
number  of  high  mountain  peaks  including  Copiapo,  20,000  feet,  and 
Parincata,  21,000  feet. 

Climate. — The  climate  of  Chile  varies  greatly  because  of  the 
great  length  of  the  republic,  about  3,000  miles.  In  the  extreme 
northern  regions  the  climate  is  hot  and  dry,  with  but  little  rain. 
Here  the  country  is  largely  desert  with  the  rich  nitrate  deposits. 
In  the  central  region  in  which  mining  is  carried  on  extensively  the 
climate  is  more  temperate.  In  the  agricultural  region  the  tempera- 
ture is  altogether  temperate  with  abundant  rains,  making  the  fertile 
valleys  exceedingly  rich.  In  this  region  there  are  various  forest 
regions,  mineral  deposits,  etc.  In  the  extreme  southern  portion  it  is 
cold,  particularly  in  Patagonia  and  Tierra  del  Fuego.  The  tempera- 
ture at  Santiago  averages  56  degrees  Fahrenheit  while  in  the  ex- 
treme north  the  average  is  91  degrees  Fahrenheit,  and  in  the  extreme 
south  17  degrees  Fahrenheit.  Because  of  the  vast  differences  in  the 
climatic  conditions  of  Chile,  they  must  be  carefully  considered  in 
studying  business  opportunities.  The  rainfall  varies  greatly,  increas- 
ing from  north  to  south.  At  Santiago  the  annual  rainfall  is  14 
inches.  At  Yaldivia  the  rainfall  is  almost  daily,  annual  average 
115  inches.  At  Atacama,  in  the  extreme  north,  no  rain  has  been 
known  for  over  50  years. 

Population. — The  population  of  Chile  is  estimated  at  between 
four  and  five  millions.  Chile  is  said  to  be  the  most  homogeneous 
nation  in  South  America.  The  people  are  largely  the  descendants 
of  the  Spanish  conquerors  who  intermarried  with  the  Indians.  The 
peasant  class  of  Chile  is  an  industrious,  peaceful  race  and,  con- 
sequently, the  republic  has  reached  a  high  state  of  development.  In 
all  the  commercial  centers,  particularly  the  more  important  ones,  the 
European  nations  have  numerous  representatives. 

Purchasing  Power. — The  purchasing  power  of  Chile  ranks  high 
among  the  Latin  American  republics.  This  is  due  to  the  great 
and  rapidly  growing  wealth  of  the  republic  which  is  chiefly  due  to 
the  wonderful  deposits  of  nitrate  which  have  added  enormously  to 
the  revenue  of  Chile,  producing  over  $500,000,000  in  export  taxes 
during  35  years.  The  extraordinary  wealth  of  the  upper  classes 
makes  possible  the  purchase  of  any  luxury  that  is  desired. 

Chief  Resources. — The  chief  source  of  Chile's  wealth  is  nitrate. 
The  nitrate  beds  are  found  in  a  territory  of  about  450  miles  in 
length,  stretching  from  Caldera  to  the  River  Camarones  in  the  north. 
The  sale  not  only  of  nitrate  but  also  of  its  by-products,  especially 
iodine,  is  a  source  of  great  revenue.     The  influence  of  the  develop- 


408  APPENDIX 

ment  of  the  nitrate  beds  on  the  building  of  railroads  and  the  con- 
sequent purchasing  of  supplies  has  been  very  important.  Besides 
nitrate,  enormous  quantities  of  coal,  copper,  and  borates  have  been 
exported.  The  chief  copper  mines  of  Chile  are  operated  by  Ameri- 
can companies.  Silver  exists  but  latterly  has  not  been  produced 
in  the  quantities  that  formerly  were  found.  Gold  likewise  exists, 
besides  numerous  other  metals.  Salt,  zinc,  graphite,  sulphur,  etc., 
are  of  some  importance. 

Other  Resources. — Agriculture  and  stock  raising  are  of  scant  im- 
portance in  comparison  with  mining.  The  valleys  and  the  plateaus 
offer  excellent  fields  for  these  industries,  and  the  outlook  for  the 
development  of  agriculture  is  better  than  it  has  been  for  years.  The 
cviltivation  of  desirable  immigration  will  increase  the  importance  of 
this  industry.  Besides  the  growth  of  cereals,  there  are  raised  numer- 
ous vegetables,  alfalfa,  etc.  Fruit  trees  of  all  sorts  are  abundant, 
besides  walnuts  and  fruits  of  the  tropics,  including  oranges,  lemons, 
coconuts,  etc.  Viticulture  is  an  important  and  growing  industry. 
Stock  raising  has  been  greatly  developed  and  the  exports  of  hides, 
goatskins,  etc.,  are  growing.  The  building  of  refrigerating  and  can- 
ning establishments  has  also  resulted  in  the  exportation  of  much 
frozen  and  canned  meat  besides  the  by-products  of  the  packing  plants. 

The  Lumber  Industry. — Chile  has  an  enormous  wealth  in  forest 
land,  which  is  now  being  developed.  Much  timber  is  produced  and 
enormous  trees  are  found  suitable  for  furniture,  tan-bark,  etc. 

Manufacturing. — The  manufacturing  interests  of  Chile  have  grown 
greatly  in  recent  years  and  bid  fair  to  rival  the  mining  and  agricul- 
tural industries  of  the  republic.  Particularly  is  this  the  case  with 
the  smaller  manufacturing  establishments  which  are  used  chiefly  in 
the  production  of  foods  and  food  preparation,  clothing,  breweries, 
mills,  and  candle  manufacturing,  the  production  of  chemical  and 
pharmaceutical  products,  tobacco  and  its  manufactures,  the  produc- 
tion of  paper,  printing  presses,  textiles,  tanneries,  woodworking 
establishments,  etc.  The  growth  of  manufacturing  will  result  in  an 
increased  sale  for  all  sorts  of  machinery,  engines,  electrical  ap- 
pliances, etc. 

Transportation. — The  republic  of  Chile  has  an  excess  of  5,000 
miles  of  railway  in  operation,  of  which  two-thirds  are  owned  by 
the  republic,  the  remainder  being  in  the  hands  of  private  corpora- 
tions. The  chief  railways  run  north  and  south  with  numerous 
branches,  spurs,  and  feeders.  When  the  Longitudinal  Railway  is 
completed  it  will  cover  almost  the  entire  length  of  Chile,  about 
2.200  miles.  Some  lines  ninko  connections  with  railroads  in  Bolivia, 
while  there  is  also  a  connection  with  the  Transcontinental  Railroad 


APPENDIX  409 

running  to  Buenos  Aires.  The  continuous  railway  construction,  and 
the  improvement  of  old  lines,  make  for  a  heavy  purchase  of  locomo- 
tives, cars  and  railway  supplies  of  all  sorts. 

Chief  Cities. — The  chief  cities  of  Chile  are  the  following :  Santiago, 
population,  350,000;  Valparaiso,  200,000;  Antofagasta,  35,000;  Con- 
cepcion,  70,000;  Iquique,  40,000;  Punta  Arenas,  15,000;  Talcahuano, 
20,000;  Valdivia,  10,000;  Talca,  40,000;  Chilian,  45,000;  La  Serena, 
25,000;  Temuco,  16,000. 

Best  Method  of  Canvassing  the  Republic. — Many  American  travel- 
ers visit  Chile  after  having  completed  a  tour  of  Argentina.  On  the 
other  hand,  some  prefer  to  visit  the  west  coast  first  and  then  go  to 
the  eastern  republics.  In  either  event,  there  are  certain  cities  which 
should  by  all  means  be  included.  The  most  important  are  the  fol- 
lowing: Valparaiso  is  the  chief  port  and  commercial  center  of  the 
republic,  with  an  enormous  shipping  traffic,  the  greatest  percentage  of 
the  imports  coming  in  that  way.  The  traveler  should  stop  here  first 
and  become  acquainted  with  commercial  conditions.  Santiago  can 
easily  be  reached  from  Valparaiso,  requiring  less  than  four  hours. 
This  is  a  larger  city  than  Valparaiso  and  with  a  considerable  trade, 
and  many  firms,  American  houses,  appoint  agents  either  in  Santiago 
or  Valparaiso  to  cover  the  republic.  In  certain  lines  this  may  be 
recommended  but  should  be  done  only  where  the  resident  agent  can 
demonstrate  that  he  is  possessed  of  an  efficient  traveling  organization 
to  visit  the  other  important  places.  For  most  lines  it  may  be  safely 
recommended  that  direct  relations  be  established  with  reliable  im- 
porters in  the  chief  cities  and  that  agents  in  one  or  another  city 
should  not  be  depended  upon  to  obtain  distribution.  After  Santiago 
and  Valparaiso,  important  cities  which  should  be  visited  are:  Talca, 
lying  south  of  Santiago,  easily  reached  by  the  trunkline.  Its  port 
is  Constitucion.  South  of  this  place  lies  Chilian,  the  capital  of  the 
province  of  Nuble  and  the  center  of  an  important  trading  district, 
particularly  in  cotton  and  horses.  From  this  place  a  visit  can  be 
made  to  Concepcion  which  is  the  capital  of  the  province  of  the  same 
name  and  the  center  of  an  important  German  population.  There  are 
numerous  manufacturers,  and  in  the  neighborhood  are  mines,  farming 
districts,  etc.  On  the  Straits  of  Magellan  is  located  the  city  of 
Punta  Arenas  which  has  become  very  important  on  account  of  the 
sheep-raising  industry,  besides  being  a  distributing  point  for  southern 
Chile.  Near  by  are  coal  mines,  gold  and  silver  likewise  being  ex- 
ported and  cattle  raising  being  an  increasing  source  of  wealth.  To 
the  north  of  Valparaiso  is  the  city  of  Taltal,  which  is  in  the  province 
of  Antofagasta.  It  is  a  regular  port  of  call.  Antofagasta  is  a  little 
further  north,  and  important  because  of  being  the  terminus  of  the 


410  APPENDIX 

Antofagasta  Railway  through  which  much  of  the  commerce  to  Bolivia 
passes.  Antofagasta  is  the  key  to  Oruro  in  Bolivia.  North  of  this 
point  is  Iquique,  which  is  the  second  port  of  importance  in  Chile. 
Its  importance  is  due  to  the  great  nitrate  industry  which  is  respon- 
sible for  the  wealth.  Still  further  north  is  the  port  of  Arica,  the 
most  northerly  port  of  Chile.  It  is  the  terminus  of  a  road  connecting 
the  port  with  La  Paz,  Bolivia.  The  chief  wealth  of  the  district  is 
due  to  agriculture  and  fruit  raising.  Tacna,  which  is  located  at  a 
short  distance  from  the  port  of  Arica,  is  the  capital  of  the  province 
of  the  same  name  and  an  important  center  of  trade  between  Bolivia 
and  the  port  of  Arica.  Near  by  are  important  copper  smelting 
works.  Coquimbo,  situated  about  200  miles  north  of  Valparaiso,  is 
the  key  to  a  very  rich  district  and  should  be  visited.  Whether  other 
places  are  to  be  visited  depends  upon  the  investigation  of  the  traveler. 
Articles  Most  Salable. — It  will  be  realized  from  the  foregoing  de- 
scription, that  the  republic  offers  opportunities  for  the  sale  of  prac- 
tically everything  that  can  be  exported.  The  wealth  of  the  country 
is  rapidly  increasing  and  the  outlook  for  the  future  is  even  more 
bright  than  it  has  been  in  the  past. 

Foreign  Commerce  of  Chile  in  Values 

Imports  Exports  Total 

1911 $127,381,479      $123,884,417      $251,265,896 

1912^^ 122,075,994        139,878,201        261,954,195 

1913 120,274,001         144,653,312        264,927,313 

Distribution  of  Foreign  Trade  (four  principal  commercial  countries) 

1912 

Imports  Exports 

United  Kingdom $38,616,886  $55,102,650 

Germany     33,189,070  28,060,695 

United  States 16,806,341  24,514,565 

France 7,261,061  7,668,570 

1913 

United  Kingdom $36,109,211  $55,548,341 

Germany         29,578,138  30,772,743 

United  States 20,089,158  30,413,386 

France 6,623,260  8,847,885 


REPUBLIC  OF  COLOMBIA 

Language. — Spanish. 

Currency.— Gold  dollar,  $1,  United  States  currency.     Actual  cur^ 


APPENDIX 


411 


rency  is  inconvertible  paper,  the  exchange  rate  of  which  is  approxi- 
mately $102  to  $1  gold. 

Weights  and  Measures. — The  metric  is  the  legal  system.  Of  the  old 
Spanish  weights  and  measures,  the  vara,  33.38  inches;  the  libra,  1.014 
pounds,  and  the  arroba,  25.36  pounds,  are  still  used. 

Postage. — Postal  Union  rates.  Parcel  post  arrangement  with 
United  States;  parcels  cannot  exceed  2  feet  in  length,  and  greatest 
girth  permissible  is  4  feet. 


Area  Square  Miles 


Population 


Population  Per  Square  Mile 


435,278 


12.57 


Year 


5,473,000 
Foreign  Commerce 
Total  Imports  Imports  from  United  States  Total  Exports    Exports  to  United  States 


1913 


Dollars 

Dollars 

Per  Cent. 

Dollars 

Dollars 

Per  Cent. 

26,987,000 

7,630,000 

28.3 

34,316,000 

18,862,000 

55.0 

Imports 


Exports 


Per  Capita 
Revenue      Expenditure 


Debt 


Interest 


Dollars 

Dollars             Dollars 

Dollars 

Dollars 

Dollars 

4.93 

6.27                  3.10 

3.51 

4.43 

.51 

Length  of  Railways 

Telegraphs 

Railroads 

Telegraphs 

Date         Miles       Date 


Miles       Miles      Per  10,000     Per  1,000 

of  of  Inhabit-  Square 

Line        Wire  ants  Miles 


Length     ,     Length 
of  Line  of  W^ire 

per  10,000     per  10,000 
Inhabit-        Inhabit- 
ants ants 


1913 


621 


1914       11,721    11,721 


Miles 
1.1 


Funded 


Debt 
Unfunded,  Including 
Floating  Non-interest- 
bearing.  Etc. 


Miles 
1.4 


Total 
in  U.  S. 
Currency 


Miles 
21.4 


Miles 
21.4 


Rates     Interest  and 
of       Other  Annual 
Interest       Charges 


Currency           Amount           Currency  Amount         Dollars       Per  Cent.       Dollars 

£  SterUng 4,035,000       Dollars 4,599,000      22,234,000        3-6  2,806,000 


Location  and  Area. — This  is  the  northernmost  country  of  South 
America,  with  an  area  of  438,436  square  miles. 

Physical  Characteristics. — Colombia  is  traversed  by  three  chains 
of  mountains,  producing  practically  all  climates,  ranging  from  the 
extreme  tropical  to  the  regions  of  eternal  snow.  There  are  several 
important  rivers,  notably  the  Magdalena,  which  is  the  largest;  there 
are  also  the  Cauca,  the  Atrato,  and  the  San  Juan.  The  climate 
of  the  lowlands  in  general  is  torrid,  but  the  plateaus  enjoy  a  climate 
which  is  practically  perpetual  spring. 

Population. — The  population  of  Colombia,  estimate  of  1915,  is 
5,500,000,  about  13  inhabitants  per  square  mile.     The  Mestizo  or 


412  APPENDIX 

mixed  white  and  Indian  classes  dominate,  the  all  white  population 
being  very  small.  The  Negroes  and  Mulattos  number  about  350,000 
while  there  are  many  aborigines,  said  to  number  in  the  neighbor- 
hood of  150,000. 

Purchasing  Power. — As  the  well-to-do  class  is  comparatively  small 
the  market  for  luxuries  is  limited,  but  there  is  a  considerable  im- 
portation of  staple  products  needed  by  all  classes.  The  development 
of  the  resources  of  the  republic,  particularly  from  the  agricultural 
and  mineral  standpoint,  makes  this  a  promising  field,  which  would  be 
even  more  desirable  if  the  difficulties  of  transportation  could  be 
overcome.  Up  to  this  time  there  has  been  comparatively  little  rail- 
road building. 

Resources. — The  resources  of  Colombia  are  chiefly  agricultural,  the 
principal  crops  being  coffee,  bananas,  ivory,  nuts,  and  tobacco.  The 
exports  of  bananas  are  growing  as  the  Santa  Marta  district  is  being, 
rapidly  exploited  by  the  United  Fruit  Company.  The  largest  percent- 
age of  the  exports  is  coffee,  for  which  the  republic  is  famous.  The 
growth  of  vegetable  ivory,  sugar  cane,  cacao,  and  tobacco  is  also  en- 
couraged. 

Other  Resources. — The  exports  of  rubber,  Panama  hats,  hides  and 
skins  have  also  been  increasing.  The  raising  of  cattle  for  hides 
should  prove  very  remunerative  because  of  the  excellent  grazing 
facilities  on  the  hills  and  in  the  valleys.  The  exploitation  of  the 
valuable  forests  of  the  republic  also  offers  good  opportunities,  par- 
ticularly if  assisted  by  the  development  of  transportation  facilities. 

Mining. — Colombia  is  rich  in  mineral  wealth,  and  gold  has  been 
one  of  the  principal  exports,  the  output  having  reached  over  $7,000,000. 
There  are  many  other  regions  in  which  gold  is  known  to  exist  both 
in  veins  and  in  placers.  Another  important  mineral  is  coal,  the 
valuable  deposits  of  which  will  prove  a  source  of  enormous  wealth 
when  developed.  Most  of  the  world's  emeralds  come  from  Colombia. 
Petroleum,  iron  ores,  and  other  metals  need  only  foreign  capital  to 
insure  great  wealth  to  the  republic. 

Principal  Cities. — Colombia  has  about  25  cities  whose  population 
is  in  excess  of  20,000.     Each  is  usually  the  center  of  an  important 
district,  mineral  or  agricultural,  or  a  port.     Some  are  reached  by 
railroads,  but  many  are  accessible  only  by  steamboats  or  by  animal 
transportation.    The  principal  cities  are  the  following :  Bogota,  82,000 
Barranquilla,     49,000;     Cartagena,     37,000;     Buenaventura,     6,000 
Santa     Marta,     14,000;     Medellin,     72,000;     Bucaramanga,     22,000 
Pasto,     28,000;     Socorro,     21,000;     Cali,    28,000;     Ibague,     25,000 
Manizales,     35,000;     Palmira,     25,000;     Popayan,     20,000;     Neiva 
22,000;     Son     Son,     30,000;     Guaduas,     27,000;     Monteria,     22,000 


APPENDIX  413 

Yarumal,  22,000;  Cucuta,  21,000;  Miraflores,  20,000;  Lorica, 
20,000;  Cartago,  20,000;  Palmira,  20,000;  Andes,  20,000;  Salaraina, 
20,000;  Fredonia,  20,000. 

Best  Method  of  Canvassing  the  Republic. — Most  of  the  travelers 
who  visit  Colombia  enter  via  the  ports  on  the  Caribbean  Sea,  the  chief 
one  of  which  is  Port  Colombia,  connected  by  rail  with  Barranquilla, 
18  miles  distant.  Other  important  ports  are  Cartagena,  Santa  Marta, 
and  Rio  Hacha.  All  of  these  places  may  be  reached  by  steamers 
from  New  York  City  and  a  number  of  European  lines  likewise 
touch  there.  The  republic  may  also  be  entered  at  the  ports  of 
Buenaventura  and  Tumaco  on  the  Pacific,  which  are  visited  by  the 
steamship  lines  plying  on  the  Pacific  coast.  It  is  customary  for 
travelers  to  visit  the  city  of  Barranquilla  first,  as  it  is  the  most 
important  commercial  center  in  the  east.  Here  are  located  a 
number  of  factories  used  to  supply  the  demand  for  local  necessities 
in  cotton  goods,  certain  lines  of  wearing  apparel,  chocolate,  matches, 
etc.  There  is  also  an  electric  lighting  and  power  system.  From 
Barranquilla,  representatives  of  certain  industries  find  it  advantageous 
to  visit  Santa  Marta,  the  headquarters  of  the  United  Fruit  Com- 
pany, although  most  of  the  firms  there  are  supplied  from  Barran- 
quilla. Another  important  place  is  Cartagena,  many  of  whose  mer- 
chants import  direct.  It  is  found  advantageous  for  some  concerns 
to  have  a  local  agency  to  care  for  business  in  the  coastal  regions, 
and  for  this  Barranquilla  is  the  most  advantageous.  Commercial 
travelers  enter  the  interior  of  the  republic  via  the  Magdalena  River 
steamers,  requiring  ten  or  twelve  days  for  the  journey.  The  trip  is 
generally  made  direct,  although  some  travelers  find  it  advantageous  to 
visit  Bucaramanga,  capital  of  Santander,  the  center  of  a  rich  district 
and  with  a  very  promising  future.  Travelers  also  occasionally  stop 
at  Puerto  Berrio,  the  port  for  the  city  of  Medellin,  the  second 
largest  city  of  the  republic  and  naturally  very  important  commercially. 
This  city  is  an  excellent  place  for  the  establishment  of  agencies  to 
care  for  the  district  of  Antioquia,  and  many  important  firms  are 
established  there.  Bogota  is  the  chief  city  of  the  interior  and 
should  be  included  in  the  itinerary  of  every  visitor.  When  local 
agents  are  necessary  one  should  always  be  established  here,  as  he 
can  then  serve  a  considerable  district.  The  city  of  Buenaventura 
on  the  Pacific  Coast  is  an  important  commercial  place  where  a  large 
business  is  carried  on.  Local  agencies  may  be  advantageously  estab- 
lished here  to  serve  the  entire  Pacific  Coast  district.  Call,  which 
is  the  capital  of  the  department  of  Cauca,  is  111  miles  from  Buena- 
ventura, and  also  worthy  of  the  visit  of  travelers,  who  will  find  ex- 
cellent opportunities  for  business.    The  city  of  Popayan,  being  in  a 


414 


APPENDIX 


strategic  position  for  trade  between  Bogota  and  Quito,  can  also  be 
visited  to  advantage.  The  time  at  the  disposal  of  the  traveler  must 
determine  whether  any  of  the  other  places  can  be  visited  to  advantage, 
but  merchants  in  the  other  sections  of  Colombia  are  supplied  by  the 
importers  of  the  cities  mentioned. 

Railways  and  Transportation. — The  principal  artery  in  Colombia 
is  the  Magdalena  River,  although  other  rivers  are  important.  The 
total  number  of  miles  of  railway  operated  in  Colombia  is  700,  prin- 
cipally short  lines  connecting  important  places  in  the  interior  and 
some  cities  on  either  coast. 

The  country  is  peculiarly  rich  and  with  capital,  credit,  and  the 
development  of  its  transportation  facilities  would  offer  one  of  the 
best  fields  for  North  American  enterprise. 

Articles  Now  Needed. — The  disturbance  of  business  relations  with 
the  European  countries  affords  an  opportunity  for  American  manu- 
facturers to  supply  certain  products.  The  principal  ones  are  as 
follows : 


Eice 

Woolen  cloth 

Blankets 

Hardware 

Barbed  wire 

Chemicals 

Dyes 

Safety  matches 

Oils 

Print  paper 

Writing  paper 

Stationery 

Cardboard 

Perfumery 

Soap 

Paints 

Varnishes 

Arms 

Ammunition 

Fancy  goods 

Vehicles 

Crockery 


Manufactures  of  cotton  (includ- 
ing ready-made  clothing) 

Canned  meats  and  vegetables 

Miscellaneous  machinery 

Drugs 

Pharmaceutical  products 

Beer 

Mineral  waters 

Earthenware 

Chinaware 

Household  utensils  of  tin  and 
enameled  ware 

Leather 

Miscellaneous  manufactures  of 
leather 

Electrical  material 

Ink 

Pigments  for  paints 

Manufactures  of  rubber,  celluloid, 
etc. 

Combs  and  other  manufactures  of 
tortoise  shell,  horn,  and  bone 

Musical  instruments  (including 
pianos,  music  boxes,  and  other 
instruments) 


APPENDIX  415 

Foreign  Commerce  of  Colombia  in  Values 

Imports  Exports  Total 

1911 $18,108,863        $22,375,899        $40,484,762 

1912 23,964,623  32,221,746  56,186,369 

1913 28,535,800  34,315,800  62,851,600 

Distribution  of  Foreign  Trade  (Jour  principal  commercial  countries) 

1912 

Imports  Exports 

United  Kingdom $7,838,879  $4,376,182 

Germany 4,201,125  f   1,854,211 

United  States 7,612,037  15,832,882 

France 2,011,886  625,199 

1913 

United  Kingdom $5,837,490  $5,566,000 

Germany 4,012,100  2,216,200 

United  States 7,629,500  18,861,800 

France 4,408,600  797,900 

THE  REPUBLIC  OF  COSTA  RICA 

Language. — Spanish.  In  Port  Limon  there  are  two  newspapers, 
one  in  Spanish  and  the  other  with  both  Spanish  and  English  sec- 
tions.    San  Jose  newspapers  are  Spanish. 

Currency. — Colon — 100  centavos=i $0,465. 

Weights  and  Measures. — The  metric  is  the  legal  system,  but  some 
old  Spanish  weights  and  measures  are  still  largely  used  in  local  trade, 
among  them  being  the  vara,  33  inches,  the  arroba,  25.36  pounds,  and 
the  libra,  1.014  pounds. 

Postage. — Postal  Union  rates.    Parcel  post. 

Area  Square  Miles  Population  Population  Per  Square  Mile 

18,691  411,000  21  99 

Foreign  Commerce 

Year       Total  Imports  Imports  from  United  States  Total  Exports    Exports  to  United  States" 

Dollars  Dollars  Per  Cent.  Dollars  Dollars  Per  Cent. 

1913  8,685,000  4,468,000  50.14  10,322,000  5,241,000  50.8 

Per  Capita 

Imports  Exports  Revenue      Expenditure         Debt  Interest 

Dollars  Dollars  Dollars  Dollars  Dollars  Dollars 

21.13  25.11  10.41  10.20  40.12  1.77 


416 


APPENDIX 


Postal  Business 
Domestic  Money  and  Postal  Orders  Sent 


Foreign  Money  Orders  Sent 


Number 
Length  of  Railways 

Value 
Dollars 
188,397 

Telegraphs 

Number 
Railroads 

Value 
Telegraphs 

Miles       Miles 
Date         Miles       Date           of             of 
Line         Wire 

Per  10,000 
Inhabit- 
ants 

Per  1,000 
Square 

Miles 

Length          Length 
of  Line          of  Wire 
per  10,000     per  10,000 
Inhabit-        Inhabit- 
ants              ants 

1914           402          1913 
Funded 

1,521              9.8 
Debt 
Unfunded,  Including 
Floating  Non-interest- 
bearing,  Etc. 

21.5 

Total 
in  U.  S. 
Currency 

37.0 

Rates     Interest  and 
of       Other  Annual 
Interest       Charges 

Currency            Amount 
£  Sterling                 2,000,000 

Currency 

Amount 

Dollars 
16,488,000 

Per  Cent.      Dollars 
4-5           727,000 

Francs 35,000,000 

Location,  Area,  and  Physical  Characteristics. — This  is  the  most 
southerly  of  the  five  Central  American  republics.  Its  extreme  length 
is  about  280  miles  and  the  width  156  miles.  The  area  is  about 
23,000  square  miles. 

The  Country  in  General. — A  lofty  plateau  rising  from  low,  sandy 
plains  along  both  coasts.  There  are  numerous  mountain  ridges 
and  a  number  of  great  volcanoes. 

Climate. — Along  the  coast  the  climate  is  quite  tropical,  being 
hot  and  moist,  with  a  mean  annual  temperature  of  78  degrees.  On 
the  plateau  the  climate  is  moderate,  at  San  Jose,  the  capital,  being 
68  degrees.  The  rainfall  at  San  Jose  is  between  60  and  70  inches. 
In  the  more  tropical  and  lower  levels  the  rainfall  annually  ranges 
between  120  and  140  inches. 

Population. — By  the  estimate  of  January  1st,  1915,  the  population 
is  400,000,  about  22  per  square  mile.  The  population  is  largely 
white,  including  several  thousand  foreigners.  Among  the  latter  are 
2,200  Europeans  and  600  Americans.  There  are  only  about  3,500 
aborigines  and  15,000  Negroes,  principally  from  Jamaica.  A  high 
degree  of  racial  purity  exists  and  the  population  is  very  different 
from  that  of  other  Central  American  countries,  particularly  Gua- 
temala. 

Purchasing  Power  of  the  Different  Classes. — Costa  Rica  is  unique 
in  its  high  per  capita  importation.  This  is  accounted  for  by  the  small 
percentage  of  aborigines,  and  the  fact  that  there  is  a  larger  middle 
class  with  substantial  purchasing  ability.  The  Negroes  are  prin- 
cipally employed  in  the  cultivation  of  the  banana  plantations  of 


APPENDIX  417 

the  United  Fruit  Company.  The  general  wealth  of  the  country  in- 
sures a  market  for  many  American  manufactures. 

Resources  and  Wealth. — The  resources  are  chiefly  agricultural,  the 
principal  crops  being  bananas,  coffee,  and  cacao,  in  the  order  named. 
The  exports  of  bananas  in  1914  totaled  over  ten  million  bunches. 
Costa  Rican  coffee  is  famous  throughout  the  world  and  enjoys  a 
high  price.  The  production  of  cacao  is  rapidly  increasing  and 
many  plantations  are  approaching  the  productive  stage. 

Other  Resources. — Hides,  rubber,  and  timber  are  additional  re- 
sources. Hides  are  exported  in  moderate  quantities  as  there  are 
excellent  grazing  facilities  on  the  hills  and  in  the  valleys.  The  out- 
put of  rubber  has  also  been  enlarged  and  the  exportation  of  valuable 
timber,  principally  cabinet  woods,  is  increasing. 

Mining. — The  principal  output  of  the  mines  of  Costa  Rica  is 
gold  largely  taken  from  a  group  of  mines  known  as  the  Aguacate. 
Aside  from  this  there  is  but  little  mining  development. 

Industries. — The  principal  industries  in  Costa  Rica  are  the  manu- 
facture of  shoes,  the  distillation  of  liquors,  and  brewing.  The 
republic  is  not  in  any  sense  a  manufacturing  one. 

Principal  Cities. — In  order  of  importance  the  principal  com- 
mercial places  of  Costa  Rica  are:  the  capital,  San  Jose,  30,000 
population;  Port  Limon,  18,000;  Cartago,  12,000;  Punta  Arenas, 
7,600. 

Best  Method  of  Canvassing  the  Republic. — Costa  Rica  may  be  en- 
tered at  Port  Limon  on  the  Atlantic  and  Punta  Arenas  on  the 
Pacific.  The  traveler  who  goes  via  Port  Limon  will  find  it  advanta- 
geous to  canvass  that  city  through  which  the  bulk  of  importations 
pass,  but  should  then  go  on  direct  to  San  Jose.  For  most  products 
this  city  is  the  logical  place  in  which  to  establish  selling  agencies  as 
the  merchants  in  other  towns  usually  depend  upon  the  distributors 
in  San  Jose.  The  dealers  in  the  outlying  places  do  not  make 
purchases  which  are  of  sufficient  importance  to  warrant  direct  im- 
portation. A  number  of  American  manufacturers  are  represented  in 
Central  America  by  agents  whose  headquarters  are  in  San  Jose 
and  who  make  periodical  trips  to  the  other  countries  of  Central 
America  from  this  point. 

Articles  Now  Needed. — In  the  past  certain  products  have  been 
imported  largely  from  Belgium,  France,  and  Germany.  The  chief 
opportunities  for  American  manufacturers  will  be  in  obtaining  this 
business.  Following  is  a  list  of  these  articles :  cement,  dyes,  coloring 
matter,  chemicals,  corks,  bottle  stoppers,  rice,  beer,  tramway  ma- 
terial, sewerage  material,  pharmaceutical  products,  cotton  fabrics, 
woolen  fabrics. 


418  APPENDIX 

List  of  Principal  Articles  for  Which  Costa  Rica  Offers  a  Field. — • 
The  following  articles  would  be  desirable  imports :  coal,  canned  and 
preserved  foods,  leather,  iron  pipe,  wheat  flour,  lumber,  lard,  butter, 
furniture,  building  material,  electrical  material,  railway  material, 
sawmills,  coffee  machinery,  sewing  machines,  typewriters,  agricul- 
tural machinery,  sugar  machinery,  mining  machinery,  grain  mills, 
cotton  fabrics,  woolen  fabrics,  silk  fabrics. 

Foreign  Commerce  of  Costa  Rica  in  Values 

Imports  Exports  Total 

1911 $8,867,561  $9,020,149         $17,987,710 

1912 10,187,686  10,071,144  20,258,830 

1913 8,778,497  10,432,553  19,211,050 

Distribution  of  Foreign  Trade  (Jour  principal  commercial  countries) 

1912 

Imports  Exports 

United  Kingdom $1,291,003  $4,193,036 

Germany 1,503,944  559,566 

United  States 5,865,908  5,025,694 

France 424,189  131,683 

1913 

United  Kingdom $1,303,187  $4,364,436 

Germany 1,355,417  509,804 

United  States 4,515,871  5,297,145 

France 391,681 96,666 

THE  REPUBLIC  OF  CUBA 

Language. — Spanish. 

Area. — 44,164  square  miles. 

Population.— 2,383,000. 

Capital. — Havana;  population  350,000. 

Area  Square  Miles  Population  Population  Per  Square  Mile 

44,164  2,383,000  53.92 

Foreign  Commerce 
Year       Total  Imports  Imports  from  United  States  Total  Exports    Exports  to  United  States 

Dollars  Dollars  Per  Cent.  Dollars  Dollars  Per  Cent. 

1914  133,975,000        71,380,000  28.3  34,316,000         18,862,000  55.0 

Per  Capita 
Imports  Exports  Revenue       Expenditure  Debt  Interest 

Dollars  Dollars  Dollars  Dollars  Dollars  Dollars 

64.15  69.03  15.34  13.73  27.33  1.80 


APPENDIX 

419 

Length  of  Railways 

Telegraphs 

Railroads 

Telegraphs 

Length           Length 

Miles       Miles 

Per  10,000     Per  1,000 

of  Line          of  Wire 

Date         Miles        Date 

of             of 

Inhabit-          Square 

per  10,000     per  10,000 

Line         Wire 

ants               Miles 

Inhabit-         Inhabit- 
ants               ants 

1913 


9.4 


50.8 


Year 


5,065        6,184 

Revenue  and  Expenditure 

Revenue  Expenditure 


20.5 


25.0 


Funded 


Dollars 
1913-14  37,940,000 

Debt 
Unfunded,  Including 
Floating  Non-interest- 
bearing,  Etc. 


Dollars 
33,974,000 


Total 
in  U.  S. 


Rates     Interest  and 
of       Other  Annual 


Currency      Interest       Charges 


Currency 
Dollars 


Amount           Currency           Amount  Dollars       Per  Cent.       Dollars 

67,620,000      67,620,000       4>i-5        4,458,000 


Location. — The  island  of  Cuba  lies  about  72  miles  southwest  of 
the  United  States. 

Area  and  Physical  Characteristics. — The  area  of  Cuba  is  44,1*34 
square  miles.  The  country  varies  materially  in  characteristics,  having 
fertile  plateaus  and  valleys,  lowlands  along  the  coast,  and  a  num- 
ber of  regular  mountain  chains. 

Climate. — Along  the  coast  the  climate  is  tropical  although  made 
agreeable  by  the  sea  breezes.  The  heat  grows  less  in  approaching 
the  interior  because  of  the  altitudes  of  the  mountains  and  plateaus. 
The  rainfall  varies  but  is  not  excessive.  The  climate,  except  during 
the  four  months  of  summer,  is  almost  ideal. 

Population. — The  population  of  Cuba  is  2,500,000,  about  56  to  the 
square  mile,  being  one  of  the  most  densely  populated  of  the  Latin 
American  countries.  The  people  of  Cuba  are:  (1)  Whites;  (2) 
Mulattos  (mixture  of  white  and  black  blood)  ;  (3)  Europeans.  The 
Spaniards  have  greatly  influenced  the  population  and  the  greatest 
immigration  has  been  from  Spain,  most  of  the  business  being  in  the 
hands  of  the  merchants  of  that  nationality.  The  immigration  from 
the  United  States  has  been  increasing  and  has  influenced  to  no 
small  degree  the  imports  from  this  country. 

Purchasing  Power. — Cuba  is  one  of  the  richest  countries  of  Latin 
America  and  the  per  caf>ita  imports  are  extremely  heavy.  The 
wealth  in  general  is  much  greater  and  the  purchasing  power  of 
the  Cuban  people  as  a  whole  higher  than  in  many  of  the  other 
Latin  American  republics. 

Chief  Sources  of  Weallli. — The  chief  sources  of  Cuban  wealth  are 
sugar,   tobacco,   fruits,   and   forest   products.     By   far  the   greatest 


420  APPENDIX 

source  of  wealth  is  the  cultivation  of  sugar,  which  has  been  developed 
to  a  high  state  of  efficiency,  as  has  likewise  the  production  of 
tobacco. 

Other  Resources. — The  by-products  of  the  sugar  industry — molasses, 
rum,  etc. — make  up  an  important  item  in  Cuban  exports.  The  raising 
of  cattle  for  their  hides  and  skins,  the  exploitation  of  the  sponge 
fishing  industry,  the  development  of  beekeeping  with  its  accom- 
panying production  of  honey  and  wax,  are  all  important  factors 
in  the  wealth  of  Cuba. 

Mining. — Within  recent  years,  the  importance  of  Cuba  as  a  min- 
eral country  has  rapidly  increased,  due  to  the  exploitation  of  iron, 
copper,  and  gold,  but  particularly  of  iron  ore  which  is  exported 
largely  to  the  plants  of  the  United  States  Steel  Company. 

Industries. — The  principal  manufacturing  of  Cuba  is  of  small 
articles  for  local  consumption.  This  is,  of  course,  with  the  excep- 
tion of  cigars  and  cigarettes  which  represent  a  large  percentage 
of  the  exports  of  manufactured  tobacco. 

Principal  Cities. — The  principal  cities  of  Cuba  are  Havana,  about 
350,000  population,  Santiago  de  Cuba,  Cienfuegos,  Matanzas,  Car- 
denas, Sagua  La  Grande,  Caibarien,  Manzanillo,  Nipe,  Puerto  Padre, 
and  Guantanamo. 

Transportation  Facilities. — The  republic  of  Cuba  has  one  of  the 
best  systems  of  railways  of  the  American  republics.  There  are 
now  in  excess  of  2,200  miles  in  service;  consequently  every  important 
place  can  easily  be  reached.  The  service  between  Havana  and  San- 
tiago is  particularly  good.  There  are  also  excellent  lines  of  fast 
steamers  and  sailing  vessels  which  can  be  taken  if  desired. 

Best  Method  of  Canvassing  Cuba. — Cuba  is  easily  reached  from  the 
United  States  by  many  lines  and  from  numerous  ports.  The  most 
important  city  is,  of  course,  Havana  and  many  manufacturers  have 
found  it  advantageous  to  establish  agencies  there  for  the  whole  of 
Cuba.  Havana  offers  excellent  facilities  for  the  solicitation  of  busi- 
ness in  other  communities  because  of  their  accessibility  and  the  com- 
parative shortness  of  the  distances.  If  it  is  desired  to  establish  other 
local  agencies,  a  city  that  should  be  taken  into  consideration  is 
Santiago  which  is  at  the  other  end  of  the  island.  Some  houses  find 
it  preferable  not  to  establish  more  than  two  agencies,  in  order  to 
allow  sufficient  territory  to  make  it  of  interest  to  the  representative. 

Articles  Salable  in  Cuba. — Because  of  the  great  wealth  of  the 
country  and  the  earning  power  of  the  people,  there  are  opportunities 
for  the  sale  of  practically  every  kind  of  American  merchandise  and 
manufactures.  The  statistics  of  exports  show  that  almost  nothing 
which  has  a  sale  at  home  is  excluded  from  Cuban  importations. 


APPENDIX 


421 


Foreign  Commerce  of  Cuba  in  Values 

Imports                      Exports  Total 

1911-12 $120,229,000      $146,787,000  $267,016,000 

1912-13 135,810,000         165,208,000  301,018,000 

1913-14 134,008,000         170,797,000  304,805,000 

Distribution  oj  Foreign  Trade  (Jour  principal  commercial  countries) 
1912-13 


Imports 


Exports 


United  States $71,754,000  $132,581,000 

United  Kingdom 16,097,000  15,663,000 

Germany 9,515,000  6,498,000 

France 8,237,000  1,826,000 

1913-14 

United  States $71,420,000  $136,936,000 

United  Kingdom 14,581,000  18,242,000 

Germany 8,276,000  4,436,000 

France 8,257,000  2,652,000 


DOMINICAN  REPUBLIC 

Language. — Spanish. 

Area. — 19,325,000  square  miles. 

Population.— 700,000. 

Capital. — Santo  Domingo ;  population  30,000. 


Year 


Area  Square  Miles 


Population 


Population  Per  Square  Mile 


19,325 


700,000 


25.89 


Foreign  Commerce 
Total  Imports  Imports  from  United  States  Total  Exports     Exports  to  United  States 


Dollars 
1913             9,272,000 

Dollars          Per  Cent.             Dollars 
5,769,000             62.2               10,470,000          I 

Per  Capita 

Dollars          Per  Cent. 
5,601.00C             53.5 

Imports 

Exports           Revenue 

Expenditure          Debt 

Interest 

Dollars 
22.79 

Dollars             Dollars 
14.44                 6.94 

Dollars             Dollars             Dollars 
6.74                 18.23                 2.54 

Length  of  Railways 

Telegraphs 

Railroads 

Telegraphs 

Miles       Miles 
Date         Miles        Date           of              of 
Line         Wire 

Per  10,000     Per  1,000 

Inhabit-          Square 

ants              Miles 

Length          Length 
of  Line          of  Wire 
per  10,000     per  10,000 
Inhaoit-         Inhabit- 
ants               ants 

1913 


400 


1,269 


5.5 


14.3 


17.5 


17.5 


422 


APPENDIX 


Year 


1913 


Funded 


Revenue  and  Expenditure 

Revenue  Expenditure 


Dollars  Dollars 

5,035,000  4,890,000 

Debt 

Unfunded,  Including  Total 

Floating  Non-interest-  in  U.  S. 

bearing.  Etc.  Currency 


Rates     Interest  and 
of       Other  Annual 
Interest       Charges 


Currency            Amount           Currency  Amount  Dollars       Per  Cent.       Dollars 

DoUara 13,218,000     Francs 70,000,000    316,693,000        4-5         17,582,000 


Location. — The  island  upon  which  Haiti  and  the  Dominican  Re- 
public are  located  is  about  1,300  miles  from  New  York,  being  70 
miles  in  the  east  from  the  island  of  Porto  Rico. 

Area  and  Physical  Characteristics. — Its  area  is  approximately  19,324 
square  miles.  The  country  rises  from  the  lowlands  at  the  sea  level 
to  many  valleys,  plateaus,  and  mountain  ranges,  there  being  four 
almost  parallel  ranges  which  traverse  the  republic.  The  highest 
peak  is  Mt.  Tina  with  an  altitude  of  10,300  feet. 

Climate. — The  climate  is  tropical,  but  very  healthful  and  modi- 
fied considerably  by  the  altitude  in  the  interior.  The  sea  breezes 
make  the  climate  even  at  the  sea  level  very  pleasant.  The  dry  season 
is  from  December  to  March  when  the  weather  is  the  coolest;  the 
wet  or  rainy  season  is  from  July  to  October.  The  average  minimum 
temperature  of  Santo  Domingo  for  a  given  year  was  69  degrees 
Fahrenheit,  the  average  maximum  86  degrees  Fahrenheit.  The  rain- 
fall generally  is  adequate. 

Population. — The  population  of  Santo  Domingo  is  chiefly  Creole  in 
character,  being  composed  of  the  descendants  of  Spaniards.  There 
is  also  a  percentage  of  European,  African,  and  Indian  blood,  including 
Turks  and  Syrians,  who,  in  general,  dominate  the  dry  goods  trade 
of  Santo  Domingo.  Spanish  is  the  language  of  the  republic.  The 
population  of  Santo  Domingo  is  about  700,000  or  about  35  per 
square  mile. 

Purchasing  Power. — In  recent  years,  political  conditions  were  ex- 
cellent, and  the  purchasing  power  of  the  republic  is  rapidly  in- 
creasing. The  lower  classes  require  certain  staples  which  make  up  a 
largo  percentage  of  Dominican  imports.  The  development  of  various 
industries  and  the  increasing  wealth  of  the  better  classes  influence 
the  purchase  of  luxuries  as  well  as  machinery,  implements,  etc. 

Resources. — Santo  Domingo  is  largely  an  agricultural  country, 
the  chief  products  being  sugar,  bananas,  tobacco,  coffee,  and  cacao; 
sugar  is  by  far  the  most  important.  The  output  of  cacao  is  rapidly 
on  the  increase. 


APPENDIX  433 

Other  Resources. — The  fertile  valleys  make  possible  the  raising 
of  cattle,  the  hides  of  which  are  being  exported  in  increasing  quan- 
tities. Bee  farming,  the  honey  and  wax  being  sold  abroad,  the 
gathering  of  medicinal  plants,  the  production  of  fibers  of  many  kinds, 
the  raising  of  cocoanuts  for  copra,  are  further  items  which  contribute 
to  the  wealth  of  the  republic. 

Mining. — As  yet  the  exploitation  of  mines  has  not  assumed  com- 
mercial importance  and  no  exports  of  minerals  are  reported,  al- 
though because  of  the  general  formation  of  the  republic  it  is  be- 
lieved that  they  exist. 

Principal  Cities. — The  principal  cities  of  Santo  Domingo  are  Santo 
Domingo,  Monte  Cristi,  Puerto  Plata,  Samana,  Sanchez,  San  Pedro, 
Macoris,  Azua,  Barahona,  Moca. 

Best  Method  of  Canvassing  the  Republic. — The  chief  ports  of  the 
Dominican  Republic  can  be  reached  by  numerous  ways  from  New 
York.  There  is  also  a  line  which  connects  Cuba  and  Porto  Rico 
with  certain  Dominican  ports.  The  chief  city  of  the  Domin- 
ican Republic  is  its  capital,  Santo  Domingo,  which  must  be 
visited  first. 

Because  of  the  comparatively  limited  opportunities,  it  may  be 
advisable  to  confine  an  agency  for  the  republic  to  an  importer  of 
this  place.  While  the  traveler  is  in  the  republic  he  may  find  it 
advisable  to  visit  Sanchez,  which  is  becoming  increasingly  impor- 
tant because  of  the  cacao  shipments,  likewise  Puerto  Plata,  and  if 
there  is  time,  San  Pedro  Macoris  and  Azua  should  also  be  included. 
For  some  lines,  the  other  cities  are  good  fields,  but  this  can  be  deter- 
mined in  the  capital. 

Transportation  Facilities. — The  republic  of  Santo  Domingo  has 
about  100  miles  of  railways  in  addition  to  230  miles  of  private  lines 
on  the  large  plantations.  A  service  of  coastwise  steamers  is  available 
for  travelers  who  desire  to  visit  the  various  ports. 

Articles  Now  Needed. — The  principal  imports  have  been  manufac- 
tures of  iron,  textiles,  steel,  dairy  products,  rice,  meat,  flour,  oils, 
etc.  The  well-to-do  classes  of  Santo  Domingo  are  becoming  con- 
stantly larger  users  of  the  luxuries  imported  from  the  United 
States. 

Foreign  Commerce  of  Santo  Domingo  in  Values 

Imports  Exports  Total 

1911 $7,949,662    $10,99.5,546    $17,945,208 

1912 8,217,808     12,385,248    20,603,146 

1913 9,272,278    10,469,947    19,742,225 


424  APPENDIX 

Distribution  of  Foreign  Trade  (Jour  principal  commercial  countries) 

1912 

Imports  Exports 

United  States $5,100,001  $7,274,606 

Germany 1,628,286  1,774,049 

United  Kingdom 720,242  1,242,980 

France 224,912  933,212 

1913 

United  States $5,769,061  $5,600,768 

Germany 1,677,833  2,068,384 

United  Kingdom 730,191  241,810 

France 274,318  887,907 

THE  REPUBLIC  OF  ECUADOR 

Language. — Spanish. 

Currency. — Sucre — 100  centavos^$0.487.  Ten  sucres  make  a 
condor,  equivalent  to  the  pound  sterling. 

Weights  and  Measures. — Metric  system  adopted,  but  old  Spanish 
weights  and  measures  are  still  used  to  some  extent.  Of  these  the 
quintal=:101.4   pounds;   libra:=1.014   pounds,   and   vara=33    inches. 

Postage. — Postal  Union  rates.  Parcel  post  arrangement  with 
United  States;  limit  of  value,  $50. 

Area. — 116,000  square  miles. 

Population.— 1,^00, Om. 

Capital. — Quito;  population  60,000. 

Area  Square  Miles  Population  Population  Per  Square  Mile 

116,000  1,500,000  12.64 

Foreign  Commerce 
Year       Total  Imports  Imports  from  "United  States  Total  Exports    Exports  to  United  Statea 


Dollars 

Dollars          Per  Cent.             Dollars 

Dollars          Per  Cent. 

1912            10,653,000 

2,704,000             26 

.0              13,718,000 

3,965,000            28.9 

Per  Capita 

Imports 

Exports           Revenue 

Expenditure          Debt              Interest 

Dollars 

Dollars             Dollars 

Dollars            Dollars            Dollars 

7.10 

9.15                  6.81 

6.81                13.19                1.74 

Length  of  Railways 

Telegraphs 

Railroads 

Telegraphs 

Length           I^ength 

Miloa        Miles 

Per  10,000      Per  1,000 

of  Line          of  Wire 

Date         Miles        Date           of              of 

Inhabit-          Square 

per  10,000     per  10,000 

Line          Wire 

ants                Miles 

Inhabit-         Inhabit- 
ants               ants 

1913  652  1912        3,318       3,318  4.3  5-5  22.1  22.1 


APPENDIX 


425 


Funded 


Revenue  and  Expenditure 

Year                   Revenue  Expenditure 

Dollars  Dollars 

1914                 10,218,000  10,218,000 

Debt 

Unfunded,  Including  Total 

Floating  Non-interest-  in  U.  S. 

bearing.  Etc.  Currency 


Rates     Interest  and 
of       Other  Annua 
Interest       Charges 


Currency           Amount           Currency 
Sucres 37,520,000     Sucres 


Amount  Dollars      Per  Cent.       Dollars 

3,125,000      19,780,000       4-10        2,604.000 


Location. — Ecuador  is  located  on  the  west  coast  of  South  America, 
at  the  Equator.  It  is  bounded  on  the  north  by  Colombia,  on  the 
east  and  southeast  by  Colombia  and  Brazil,  on  the  south  by  Peru, 
and  on  the  west  by  the  Pacific  Ocean. 

Area  and  Physical  Characteristics. — ^Ecuador  contains  about  116,- 
000  to  119,000  square  miles.  It  may  be  roughly  divided  into  three 
different  areas:  (1)  The  coastal  region  lying  between  the  Andes 
Mountains  and  the  Pacific  Ocean,  extremely  tropical  in  character 
and  with  a  heavy  tropical  vegetation;  (2)  The  higher,  mountainous 
area  including  about  one-third  of  the  republic,  with  plateaus  and 
valleys,  and  varying  from  three  to  twelve  thousand  feet  above  the 
sea  level;  (3)  The  eastern  Andean  region  falling  to  the  plains  of 
the  Amazon  River.  In  Ecuador  are  found  some  of  the  highest  peaks 
of  the  Andes  and,  in  fact,  some  of  the  highest  in  South  America. 
Among  these  are  Chimborazo,  21,498  feet,  Cotopaxi,  20,000  feet,  etc. 
There  are  a  number  of  important  rivers,  including  the  Guyas,  the 
Maranon,  the  Daule,  the  Esmeraldas,  etc. 

Climate. — In  the  coastal  regions  the  climate  is  distinctly  tropical, 
being  hot  and  dry,  with  a  mean  annual  temperature  of  80  degrees 
Fahrenheit.  The  dry  season  lasts  from  June  to  December;  the  wet 
season  from  January  to  June.  The  plateau  regions  which  lie  be- 
tween two  ranges  of  the  Andes  have  a  temperate  climate  closely 
resembling  perpetual  spring.  The  seasons  are  somewhat  like  those 
at  the  seaport.  Quito  has  a  mean  temperature  of  56  degi^ees  Fahren- 
heit. In  the  third  region  or  Montaiia,  particularly  on  the  lower 
mountain  slopes,  the  climate  is  tropical.  The  rainfall  is  very  heavy 
and  the  temperature  high. 

Population. — The  population  of  Ecuador  is  estimated  at  1,500,000. 
The  people  are  composed  largely  of  Indians,  representing  from  one- 
lialf  to  three-fourths  of  the  population;  Mestizos,  between  300,000 
and  400,000;  and  pure  whites,  100,000  to  200,000.  Naturally,  repre- 
sentatives of  European  nations  are  found  among  the  commercial 
classes  in  all  the  principal  cities. 


426  APPENDIX 

Purchasing  Power  of  the  Different  Classes. — The  large  percentage 
of  Indians  in  the  population  of  Ecuador  makes  the  per  capita  pur- 
chasing ability  of  this  country  smaller  than  that  of  some  of  the  other 
republics.  The  upper  classes  are  well-to-do  and  are  rapidly  develop- 
ing a  taste  for  all  the  articles  which  increasing  wealth  makes  pos- 
sible. The  bulk  of  imports  is  to  supply  the  staple  requirements  of 
the  Mestizo  and  lower  classes.  The  steady  development  of  the  repub- 
lic will  make  for  an  increasing  demand  by  all  classes  for  Amer- 
ican products  and  manufactiires,  in  direct  ratio  to  their  purchasing 
ability. 

Chief  Sources  of  Wealth. — The  resources  of  Ecuador  are  chiefly 
agricultural.  The  most  important  product  is  the  cacao  bean  which 
represents  over  half  the  exports.  Another  product  that  is  very 
important  is  the  tagua  or  ivory  nut,  of  which  many  millions  of 
pounds  are  shipped  to  different  markets  of  the  world.  Sugar  is  be- 
ing raised  in  increasing  quantities,  while  coffee,  rubber,  and  plants 
used  for  medicinal  purposes  are  likewise  important  factors  in  the 
foreign  trade.  Among  these  are  the  mangrove,  kapok,  fibers,  etc. 
The  various  products  enumerated  will  undoubtedly  become  increas- 
ingly important. 

Other  Eesources. — One  of  the  chief  industries  of  Ecuador  is  the 
weaving  of  straw  hats  known  as  Panama  hats,  of  which  approxi- 
mately a  million  and  a  half  dollars'  worth  are  shipped  annually. 
Cattle  breeding  is  growing  in  importance,  and  hides,  as  well  as  goat- 
skins, are  being  exported. 

Mining. — Although  Ecuador  is  recognized  as  having  very  rich 
deposits  of  metals,  they  have,  as  yet,  been  slightly  developed.  Those 
which  are  most  commonly  found  are  gold,  mercury,  copper,  iron, 
lead,  coal,  silver  ore,  and  platinum.  Petroleum  and  sulphiir  have 
been  found,  and  only  the  lack  of  transportation  facilities  prevents 
development  of  the  coal  deposits.  The  future  for  the  mining  indus- 
try of  Ecuador  is  very  bright. 

Manufacturing  Industries. — The  manufacturing  industries  of 
Ecuador  are  carried  on  in  a  comparatively  small  way.  The  more 
important  manufacturing  plants  are  devoted  to  the  production  of 
woolen  and  cotton  blankets,  carpets,  etc.  Among  the  other  indus- 
tries represented  are  a  shoe  factory,  flour  mills,  foundries,  ice  fac- 
tories, and  sugar  refineries.  There  is  a  good  and  growing  field  in 
Ecuador  for  the  sale  of  machinery  and  equipment  for  smaller  manu- 
facturing establishments. 

Principal  Cities. — The  principal  cities  of  Ecuador  are  the  fol- 
lowing: Guayaquil,  population  80,000;  Quito,  the  capital,  80,000; 
Cuenea,  35,000;  Loja,  12,000;  Kiobamba,  15,000;  Machala,  6,000, 


APPENDIX  427 

Best  Method  of  Canvassing  the  Republic. — The  chief  commercial 
city  of  Ecuador  is  Guayaquil,  which  is  situated  on  the  Guayas  River 
35  miles  above  its  mouth  and  easily  accessible,  to  vessels  drawing 
25  feet,  via  the  Gulf  of  Guayaquil.  Many  manufacturers  are  satis- 
fied to  place  their  representation  with  firms  in  Guayaquil  when  the 
latter  have  facilities  for  visiting  the  other  places  throughout  the 
republic.  This  is  the  first  point  the  traveler  visits  and  for  that  rea- 
son he  can  early  decide  what  is  the  best  course  to  pursue.  From 
Guayaquil  the  trip  is  usually  made  to  Quito,  the  capital,  also  an  im- 
portant commercial  center.  This  should  be  included  in  the  route 
of  every  traveling  representative.  On  the  way  back  from  Quito, 
if  it  has  been  found  inadvisable  to  depend  upon  agents  in  Guayaquil 
or  Quito,  the  following  cities  are  worthy  of  visits:  Ambato,  which 
is  in  the  center  of  an  important  agricultural  district;  Riobamba,  the 
chief  city  of  a  district  in  which  cattle  raising  is  carried  on  ex- 
tensively, besides  agriculture,  etc. ;  Cuenca,  in  the  province  of  Azuay, 
a  rather  important  place  noted  for  its  agriculture  and  stock  raising; 
Esmeraldas,  which  is  located  in  the  western  part  of  that  prov- 
ince, may  be  found  desirable  for  the  establishment  of  an  agency 
for  an  otherwise  isolated  district;  Manta,  situated  in  the  province 
of  Manabi,  is  the  port  for  the  towns  of  Jipijapa  and  Monte  Cristi, 
the  principal  places  for  the  production  of  Panama  hats.  Manta 
may,  for  certain  lines  of  merchandise,  prove  a  good  place  to 
visit. 

Transportation  Facilities. — In  the  republic  of  Ecuador,  the  prin- 
cipal railway  extends  from  the  port  Guayaquil  to  Quito,  a  distance 
of  almost  300  miles.  The  balance  of  the  lines  are  short  strips  run- 
ning between  some  of  the  smaller  places.  The  total  mileage  in  opera- 
tion in  Ecuador  is  3G5.  There  is  a  considerable  use  of  the  rivers 
for  transportation  where  these  are  navigable. 

Articles  Salable  in  Ecuador. — The  chief  imports  of  Ecuador  have 
been  foodstuffs,  clothing,  manufactures  of  iron  and  steel,  hard- 
ware, machinery,  and  textiles,  the  latter  the  most  important. 
The  more  important  cities  of  Ecuador  today  offer  opportunities 
for  the  sale  of  almost  anything  that  can  be  exported  to  South 
America. 

Foreign  Commerce  in  Values 

Imports  Exports  Total 

1911 $11,489,104    $12,692,237    $24,181,341 

1912 10,354,564    13,689,696    24,044,260 

1913 8,836,689    15,789,367    24,626,056 


428 


APPENDIX 


Distribution  of  Foreign  Trade  (Jour  principal  commercial  countries) 

1912 


Imports 


Exports 


United  Kingdom $3,058,391  $2,042,278 

United  States 2,686,712  3,957,306 

Germany 2,105,372  1,523,356 

France 616,053  4,096,863 

1913 

United  Kingdom $2,617,027  $1,620,092 

United  States 2,817,754  3,833,728 

Germany 1,563,129  2,627,353 

France 434,740  5,382,352 


THE  REPUBLIC  OF  GUATEMALA 

Language. — Spanish. 

Currency. — The  value  of  the  Guatemalan  silver  peso  on  January 
1,  1912,  was  given  by  the  United  States  Treasury  Department  as 
$0.40.  The  actual  currency  of  the  country  is  inconvertible  paper, 
subject  to  wide  fluctuations.  Peso=100  centavos;  realrr:12y2  cen- 
tavos;  medio  reali=6^  centavos. 

Weights  and  Measures. — The  metric  is  the  official  system,  but  some 
old  Spanish  weights  and  measures  are  still  used  in  local  trade,  among 
them  being  the  vara^32.87  inches  and  the  arroba:=25.36  pounds. 

Postage. — Postal  Union  rates.    Parcel  post. 


Area  Square  Miles  Population  Population  Per  Square  Mile 


48,290 


2,119,000 


43.88 


Foreign  Commerce 
Year       Total  Imports  Imports  from  United  States  Total  Exports    Exports  to  United  Statea 


Dollars 
1913            10,062,000 

Imports 

Dollars 
5,053,000 

Exports 

Per  Cent.             Dollars               Dollars          Per  Cent. 
50.2               14,450,000          3,923,000             27.1 

Per  Capita 
Revenue      Expenditure          Debt              Interest 

Dollars 
4.75 

Length  of  Railways 

Dollars             Dollars 
6.82                  1.31 

Telegraphs 

Dollars            Dollars            DoUara 
1.2G                 8.29                  .66 

Railroads                           Telegraphs 

Date         Miles        Date 

Miles 

of 
Linn 

Miles 

of 
Wire 

Per  10,000      Per  1,000 

Inhabit-          Square 

ants               Miles 

Length 

of  Line 

per  lO.OOO 

Inliabit- 

ants 

Length 

of  Wire 
per  10,000 
Inhabit- 
ants 

1914            502           1913 

3,7,*<3 

2.1                 10.4 

17.9 

APPENDIX 

429 

Debt 

Unfunded,  Including 

Total 

Rates     Interest  and 

Funded 

Floating  Non-interest- 

in  U.  S. 

of       Other  Annual 

bearing,  Etc. 

Currency 

Interest       Charges 

Currency           Amount 

Currency           Amount 

Dollars 

Per  Cent.       Dollars 

Pesos,  gold.. ..     11,584,000' 

Pesos,  paper .    107,885,000 

17,577,000 

4-8          1,401,000 

Location,  Area,  and  Physical  Characteristics. — The  republic  of 
Guatemala  is  the  most  northerly  of  the  Central  American  republics. 
It  is  bounded  on  the  north  and  west  by  Mexico  and  British  Honduras, 
on  the  east  by  the  Atlantic  Ocean  and  Spanish  Honduras,  on  the 
south  by  Salvador  and  the  Pacific  Ocean.  Its  area  is  approximately 
48,290  square  miles.  The  altitude  of  the  country  is  very  clearly 
defined  into  three  regions;  the  hot  coast  lands  less  than  2000  feet 
above  sea  level,  the  temperate  regions  between  2000  and  6000,  and 
the  colder  regions  which  lie  at  an  altitude  of  6000  feet  and  higher. 

Population. — The  population  of  Guatemala,  as  estimated  in  1915, 
is  2,100,000,  or  about  43  per  square  mile.  The  largest  proportion 
of  the  people  (about  60  per  cent.)  is  comprised  of  pure-blooded  In- 
dians of  many  different  tribes.  The  rest  of  the  population  consists 
largely  of  a  mixed  class  which  includes  most  of  the  business  men. 
Of  foreigners  there  are  about  1600  Americans,  600  Spaniards,  700 
Italians,  800  Germans,  200  English,  100  French,  and  150  other 
Europeans. 

Purchasing  Power. — In  consequence  of  the  large  percentage  of 
Indians,  the  per  capita  importations  of  Guatemala  are  rather  small, 
although  the  possibilities  for  the  future  are  great.  Many  American 
products  have  a  sale  among  the  better  classes.  Agricultural  machin- 
ery, tools,  and  other  modern  implements  are  needed  in  the  outlying 
districts. 

Resources. — The  chief  source  of  Guatemalan  wealth  is  coffee,  which 
forms  the  largest  percentage  of  its  exports.  The  banana  industry 
dominated  by  the  United  Fruit  Company  has  been  growing  and  in 
1913  exports  of  this  item  amounted  to  about  $825,000.  Other  ex- 
ports consist  of  cattle,  hides,  sugar,  timber  (principally  hard  woods), 
rubber,  and  chicle. 

Mining. — The  mineral  wealth  of  Guatemala  is  conceded  by  all 
authorities  to  be  great,  although  the  output  until  now  has  been 
small.  This  has  been  due  to  the  lack  of  transportation  facilities,  to 
unfavorable  mining  laws,  and  to  other  causes  which  have  been  re- 
moved. The  possibilities  for  the  development  of  this  industry  are 
very  promising. 

Industries. — Guatemala  is  not  an  industrial  country.  The  manu- 
factures are  limited  to  a  modern  textile  mill  for  which  cotton  ia 


430  APPENDIX 

imported;  there  are  also  a  number  of  ice  factories,  breweries,  tan- 
neries, and  small  factories  in  which  are  made  furniture,  soap,  candles, 
shoes,  etc. 

Principal  Cities. — In  order  of  importance  the  principal  commer- 
cial places  of  Guatemala  are  the  following :  Guatemala  City,  pojiu- 
lation  100,000;  Quezaltenango,  30,000;  Coban,  22,000;  Totonicapam, 
18,000;  Chiquimula,  12,500;  Antigua,  12,000;  Escuintla,  13,000; 
Eetalhuleu,  8,000;  Puerto  Barrios,  8,000. 

Best  Method  of  Canvassing  the  Republic. — The  republic  of  Guate- 
mala can  be  entered  from  both  the  Atlantic  and  the  Pacific  oceans. 
On  the  Atlantic  the  principal  seaports  are  Puerto  Barrios,  terminus 
of  the  Northern  Railway,  and  Livingston.  The  ports  of  the  Pacific 
are  San  Jose,  Champerico,  and  Ocos.  San  Jose  is  the  starting  point 
of  the  Guatemala  Central  Railway,  by  which  most  of  the  travelers 
enter  the  republic.  Travelers  usually  find  it  most  advantageous  to 
canvass  the  republic  from  Guatemala  City,  in  which  selling  agencies 
are  logically  established  and  to  which  city  most  of  the  general  mer- 
chants of  the  interior  come  for  their  supplies.  Generally  speaking, 
it  does  not  pay  the  exporter,  unless  dealing  with  individuals  whose 
purchases  warrant  it,  to  establish  direct  relations  with  merchants  in 
the  cities  outside  of  Guatemala,  except  in  Quezaltenango,  which  is 
about  120  miles  from  the  capital  and  in  the  heart  of  a  very  rich 
coffee  and  corn  region.  Many  firms  have  found  it  advantageous 
to  establish  representatives  at  this  place,  which  can  best  be  reached 
from  Champerico  although  a  branch  railroad  is  in  course  of  con- 
struction from  the  Guatemala  Central  Railway.  Similar  arrange- 
ments may  also  be  made  in  Coban,  which  is  about  90  miles  from 
the  capital  and  is  likewise  the  center  of  a  rich  agricultural  district. 

Railways  and  Transportation. — Guatemala  has  excellent  connec- 
tions by  railway  between  the  ports  and  the  capital.  There  are  other 
lines  reaching  some  of  the  principal  places,  the  total  mileage  be- 
ing 500. 

Articles  Now  Needed. — Many  of  the  goods  imported  into  Guate- 
mala previous  to  the  European  War  came  from  Europe,  Germany 
having  supplied  over  two  million  dollars'  worth.  Trading  with  the 
other  European  countries  may  also  be  handicapped  for  a  time,  and  a 
portion  of  that  commerce  may  be  obtained  by  American  firms  if  the 
right  effort  is  made. 

Articles  Now  Needed. — One  of  the  opportunities  of  the  American 
manufacturer  is  afforded  by  the  sale  of  articles  which  have  hitherto 
been  bought  exclusively  in  Europe,  or  the  sale  of  which  the  Euro- 
pean nations  have  controlled.  The  principal  articles  of  this  charac- 
ter are  the  following:  beer,  mineral  waters,  cement,  cutlery  and  tin- 


APPEJ^'DIX  431 

ware,  barbed  wires,  leather,  rice,  dyes,  candles,  glass  and  glassware, 
miscellaneous  cotton  goods  (including  ready-made  clothing),  manu- 
factures of  linen,  tools  and  implements,  paper,  books,  stationery, 
canned  and  preserved  fruits,  drugs  and  chemicals,  perfumery  and 
toilet  articles. 

Foreign  Commerce  of  Guatemala  in  Values 

Imports  Exports  Total 


1912 $9,822,462        $13,156,538        $22,979,000 

1913 10,062,328  14,449,926  24,512,254 

1914 9,331,115  12,754,026  22,085,141 


Distribution  of  Foreign  Trade  (four  principal  commercial  countries) 

1912 

Imports  Exports 

United  States $4,532,361  $3,863,829 

United  Kingdom 1,739,598  1,458,492 

Germany 2,250,862  7,653,557 

France 436,882  969 

1913 

United  States $5,053,060  $3,923,354 

United  Kingdom 1,650,387  1,600,029 

Germany 2,043,329  7,653,557 

France 402,025  21,268 

THE  REPUBLIC  OF  HAITI 

Language. — French. 

Area. — 10,200  square  miles. 

Population.— 2,000,000. 

Capital. — Port  au  Prince;  population  90,000. 

Area  Square  Miles  Population  Population  Per  Square  Mile 

10,200  2,000,000  225.79 

Foreign  Commerce 
Year       Total  Imports  Imports  from  United  States  Total  Exports    Exports  to  United  States 

Dollars  Dollars  Per  Cent.  Dollars  Dollars  Per  Cent. 

1913  10,935,000  6,499,000  59.4  17,273,000  842,000  4.9 

Per  Capita 
Imports  Exports  Revenue       Expenditure  Debt  Interest 

Dollars  Dollars  Dollars  Dollars  Dollars  Dollars 

4.37  6.91  2.51  3.25  17.15  1.19 


433 


Length  of  Railways 


APPENDIX 

Telegraphs 

Railroads 

Telegraphs 

Length           Length 

Miles        Miles 

Per  10,000     Per  1,000 

of  Line          of  Wire 

of              of 

Inhabit-          Square 

per  10,000     per  10,000 

Line         Wire 

ants               Miles 

Inhabit-         Inhabit- 
ants               ants 

Date 


Miles        Date 


1913 


140 


1910 


124 


124 


12.6 


Revenue  and  Expenditure 
Year  Revenue  Expenditure 


Dollars 

Dollars 

1913-14                6,282,000 

8,127,000 

Debt 

Unfunded,  Including 

Total 

Rates     Interest  and 

Funded 

Floating  Non-interest- 

in  U.  S. 

of       Other  Annual 

bearing,  Etc. 

Currency 

Interest       Charges 

Currency            Amount 

Currency           Amount 

Dollars 

Per  Cent.      Dollars 

Dollars 12,763,000 

Dollars 7,077,000 

42,863,000 

2M-5       2,984,000 

Francs 119,286,000 

Location. — The  republic  of  Haiti  occupies  the  western  portion  of 
the  island  of  Haiti.     It  is  about  1200  miles  from  New  York. 

Area  and  Physical  Characteristics. — Haiti  has  an  area  of  about 
12,000  square  miles.  It  is  very  mountainous  and  has  numerous  val- 
leys besides  many  natural  harbors.  There  are  numerous  rivers,  but 
in  the  main  unnavigable. 

Climate. — The  climate  is  naturally  tropical,  being  particularly 
warm  along  the  coast  where  it  is  hot  and  moist,  although  the  sea 
breezes,  which  blow  steadily,  make  the  climate  very  agreeable.  On 
the  plateaus  and  in  the  uplands  the  latitude  renders  the  conditions 
very  deliglitful.  Haiti  is,  on  the  whole,  very  healthful.  The  rainfall 
is  sufficient  for  the  needs  of  the  island,  but  not  excessive. 

Population. — The  population  of  Haiti  is  estimated  at  2,000,000,  or 
about  200  per  square  mile.  The  people  are  chiefly  of  African  blood, 
but  there  are  some  Europeans  and  Americans.  French  is  the  chief 
language  spoken,  and  Haiti  has  come  very  greatly  under  French 
influence. 

Purchasing  Power. — Haiti  is  extremely  rich,  possessing  large  min- 
eral resources  which  are  quite  undeveloped,  besides  a  wonderful  wealth 
in  tropical  agriculture.  Because  of  the  unsettled  jiolitical  conditions 
which  prevailed  prior  to  this  time,  the  resources  have  not  been  ex- 
ploited, but  with  the  signing  of  the  treaty  with  the  American  Gov- 
r-rnment  for  tho  administration  of  the  revenues  of  the  island  a  rapid 
development  will  unquestionably  follow.  The  purchasing  power  of 
the  lower  classes  has  been  confined  to  the  staple  necessities,  but  there 


APPENDIX  433 

is  an  increasing  sale  for  luxuries  which  will  undoubtedly  show  a  still 
larger  growth  during  the  next  few  years. 

Resources. — The  chief  resources  of  Haiti  are  agricultural.  The 
products  are  mainly  coffee  (of  which  a  high  grade  is  produced), 
cacao,  cotton,  fibers,  tobacco,  etc. 

Other  Resources. — Haiti  exports  large  quantities  of  logwood,  me- 
dicinal plants,  etc.  The  raising  of  cattle  is  becoming  increasingly 
important,  and  goatskins  are  one  of  the  most  important  items  in  the 
exports. 

Mineral  Resources. — The  republic  has  large  deposits  of  valuable 
metals — gold,  silver,  tin,  sulphur,  etc. — but  thus  far  they  have  not 
been  developed.  The  outlook  for  these  industries  in  the  future  is 
very  bright. 

Manufactunng  Industries. — The  manufacturing  industries  of 
Haiti  are  not  important,  being  confined  principally  to  the  manu- 
facturing of  soap,  shoes,  and  small  items  for  local  consumption. 
The  by-products  of  the  sugar  industry,  rum  and  spirits,  are 
produced. 

Transportation. — In  the  republic  of  Haiti  there  are  a  number  of 
lines  of  railway  in  operation,  and  the  lines  which  have  been  pro- 
jected will  undoubtedly  be  constructed  during  the  next  few  years. 
The  total  now  is  about  TO  miles,  consisting  principally  of  short  lines 
in  particular  localities.  The  construction  of  the  railroads  will  result 
in  the  development  of  splendid  lands  suitable  for  grazing,  farming, 
etc.  Most  of  the  rivers  are  not  navigable,  but  one,  the  Artibonite, 
can  be  used  for  about  100  miles. 

Chief  Cities. — The  chief  cities  of  Haiti  are:  Port  au  Prince,  Cape 
Hatien,  Petit  Goave,  Port  de  Paix,  Gonaives,  Goave,  Aux  Cayes, 
Jacmal,  and  Jeremie. 

Best  Method  of  Canvassing  the  Repuhlic. — The  chief  city  of  Haiti 
is  Port  au  Prince.  It  is  here  that  many  American  manufacturers 
have  established  agencies  with  responsible  firms  who  are  in  a  posi- 
tion to  visit  the  other  places  in  the  island.  Because  of  the  com- 
paratively limited  field,  it  may  prove  advisable  to  place  the  repre- 
sentation exclusively  in  the  hands  of  an  agent  at  Port  au  Prince. 
Although  the  city  of  Cape  Haitien  is  also  important,  the  traveler  who 
visits  Haiti  should  stop  first  at  Port  au  Prince,  and,  after  looking 
over  the  field,  reach  a  decision  in  reference  to  the  other  parts  of 
the  country. 

Articles  Needed. — The  chief  needs  of  Haiti  are  cotton,  textiles, 
hardware,  iron  and  steel,  lumber,  food  products,  lard,  flour,  sewing 
machines,  etc.  Almost  all  products  and  manufactures  can  be  sold  in 
at  least  the  larger  cities  of  Haiti. 


434  APPENDIX 


Foreign  Commerce  in  Values 

Imports  Exports  Total 


1911 $7,948,117        $18,553,660        $26,501,777 

1912 9,876,555  17,285,485  27,162,040 

1913 8,100,125  11,315,559  19,415,684 

Distribution  of  Foreign  Trade  (four  principal  commercial  countries) 

1912 

Imports  Exports 


United  States 

France 

United  Kingdom 

Germany 

1913 

United  States 

France 

United  Kingdom 

Germany 


$7,302,484 

$1,100,000 

1,050,416 

8,500,000 

761,206 

1,300,000 

484,915 

6,100,000 

$5,908,956 

$1,000,000 

817,335 

5,000,000 

593,319 

800,000 

535,544 

4,200,000 

THE  REPUBLIC  OF  HONDURAS 

Language. — Spanish. 

Currency. — The  value  of  the  Honduran  silver  peso  on  January  1, 
1912,  was  given  by  the  United  States  Treasury  Department  as  $0.40. 
The  actual  currency  of  the  country  is  inconvertible  paper,  which 
fluctuates  widely  in  value.  Peso=100  centavos;  real:=12i/^  cen- 
tavos;  medio  realr=6^  centavos. 

Weights  and  Measures. — The  metric  is  the  legal  system,  but  the  na- 
tives still  use  some  of  the  old  Spanish  weights  and  measures,  among 
them  being  the  vara=32.87  inches,  and  the  arroba=r25.36  pounds. 

Postage. — Postal  Union  rates.    Parcel  post. 

Area  Square  Miles  Population  Population  Per  Square  Mile 

46,250  589,000  13.09 

Foreign  Commerce 
Year       Total  Imports  Imports  from  United  States  Total  Exports    Exports  to  United  States 

Dollars  Dollars  Per  Cent.  Dollars  Dollars  Per  Cent. 

1913  5,133,000  3,464,000  67.5  3,300,000  2,869,000  86.9 

Per  Capita 
Imports  Exports  Revenue       Expenditure  Debt  Interest 

Dollars  Dollars  Dollars  Dollars  Dollars  Dollars 

8.71  5.60  3.57  3.57  205.88  .26 


APPENDIX 


435 


Length  of  Railways 


Telegraphs 


Railroads 


Telegraphs 


Date 


Miles       Date 


Miles 

of 
Line 


Miles 

of 
Wire 


Per  10,000 
Inhabit- 
ants 


Per  1,000 
Square 
Miles 


Length 
of  Line 
per  10,000 
Inhabit- 
ants 


Length, 
of  Wire 
per  10,000 
Inhabit- 
ants 


174 


1913 


305 


3,212 


3.0 


5.2 


54.5 


Funded 


Debt 

Unfunded,  Including  Total 

Floating  Non-interest-  in  U.  S. 

bearing,  Etc.  Currency 


Rates     Interest  and 
of       Other  Annual 

Interest       Charges 


Currency  Amount  Currency  Amount  Dollars       Per  Cent.       Dollars 

£  Sterling 24,324,000     Pesos,  sUver. .       6,625,000     121,261,000       5-10  152,000 

Location,  Area  and  Physical  Characteristics. — The  republic  of 
Honduras  is  the  third  in  size  of  the  Central  American  republics.  It 
is  bounded  on  the  north  by  the  Caribbean  Sea,  on  the  south  by- 
Nicaragua,  Salvador,  and  the  Pacific  Ocean,  and  on  the  west  by 
Guatemala.  Honduras  is  mountainous  practically  throughout  its 
area.  The  climate  varies  materially,  being  tropical  along  the  coasts, 
temperate  in  the  upland  plateaus  and  valleys.  These  plateaus  are 
very  large  in  extent  and  area.  The  climate  in  the  principal  towns  in 
the  interior  averages  74  degrees  Fahrenheit  with  but  slight  varia- 
tions. 

Population. — The  population  of  Honduras  is  about  600,000,  or  13 
inhabitants  to  the  square  mile.  The  largest  percentage  of  the  peo- 
ple are  Indians,  a  part  of  whom  are  still  uncivilized.  The  better 
classes  are  largely  descendants  of  the  Spanish  with  a  mixture  of  the 
natives.  Some  Europeans  are  found  in  all  of  the  principal  cities, 
and  the  large  percentage  of  Americans  in  the  ports  on  the  east  coast 
is  due  to  the  operations  of  the  United  Fruit  Company. 

Purchasing  Power. — The  purchasing  power  of  Honduras  has  been 
growing  in  consequence  of  the  development  of  its  industries,  par- 
ticularly agriculture.  The  opportunities  for  American  merchants  lie 
in  the  supplying  of  machinery,  materials,  and  supplies  for  the  prin- 
cipal industries,  and  for  the  wants  of  the  more  wealthy  in  the  larger 
cities. 

Resowces. — The  chief  resources  of  Honduras  are  agricultural 
and  the  raising  of  bananas  is  the  most  important  pursuit.  The  At- 
lantic Coast  region  is  particularly  rich  in  banana  plantations,  which 
are  responsible  for  the  growth  of  Puerto  Cortez,  Ceiba,  Trujillo,  and 
Tela  as  ports.  Other  important  agricultural  products  are  cofFee, 
tobacco,  cacao,  cotton,  etc.  The  plateau  regions  afford  means  of 
raising  the  products  common  to  the  Temperate  Zone,  principally 
cereals,  corn,  fruits,  vegetables,  etc.     The  raising  of  cattle  has  be^ 


436  APPENDIX 

come  increasingly  important  and  tliey  have  already  been  exported  to 
Cuba  as  well  as  to  the  United  States.  Mahogany,  pine,  and  other 
important  woods  are  found  in  the  forests  and  their  exportation  is 
purely  a  question  of  the  development  of  transportation  facilities. 

Mining. — One  of  the  chief  sources  of  wealth  of  Honduras  is  the 
gold  and  silver  mines.  There  are  also  important  deposits  of  coal, 
and  many  other  minerals  have  been  located  but  their  exploitation  has 
not  been  undertaken.  The  ore  already  in  sight  in  a  number  of  the 
mines  now  being  operated  indicates  profitable  operations  for  many  years 
to  come.  One  mine  near  Tegucigalpa,  the  Rosario,  has  had  an  enor- 
mous production  of  precious  metals. 

Industries. — The  industries  of  Honduras  are  practically  negligible 
and  confined  to  the  manufacture  of  certain  articles  needed  for  local 
sale. 

Principal  Cities. — The  principal  cities  of  Honduras  are:  Teguci- 
galpa, the  capital,  with  about  30,000  population ;  Tela,  2500 ;  La  Ceiba, 
6000;  Trujillo,  2500;  Amapala,  3500;  Nacome,  8100;  San  Pedro 
Sula,  9000;  Puerto  Cortez,  2500;  Comayagua,  8000;  Choluteca,  11,000. 

Best  Method  of  Canvassing  the  Republic. — For  commercial  pur- 
poses the  republic  of  Honduras  should  be  divided  into  two  parts : 
the  northern  and  eastern  coast,  and  the  southern  or  Pacific  division. 
It  is  important  to  recognize  that  communication  between  the  capital 
and  the  northern  coast  is  very  difficult  and  conditions  in  the  two  sec- 
tions are  dissimilar.  The  northern  coast  is  in  close  communication 
with  New  Orleans  and  Mobile  by  reason  of  the  steamers  which  ply 
between  those  ports  and  the  banana  ports  of  the  republic.  Traveling 
salesmen  who  "make"  this  portion  of  the  republic  usually  come  by 
way  of  New  Orleans,  and  if  necessary  to  visit  the  smaller  places, 
it  is  the  custom  to  charter  motor  launches  or  small  schooners.  From 
Puerto  Cortez  there  is  railroad  communication  with  San  Pedro 
Sula,  37  miles  distant.  The  latter  is  an  important  place  and  an 
excellent  point  for  the  establishment  of  an  agency.  Trujillo  is  also 
an  important  port.  Tela,  which  lies  between  the  ports  of  Puerto 
Cortez  and  La  Ceiba,  is  the  administrative  center  for  the  United 
Fruit  Company  and  therefore  an  excellent  place  for  commercial  trav- 
elers to  visit.  The  other  part  of  the  republic  is  entered  by  way  of 
the  port  of  Amapala  on  the  Bay  of  Fonseca.  There  is  no  railroad 
connection  between  Amapala  and  the  capital  and  it  is  necessary  to 
make  the  trip  via  automobile  or  horseback.  Tegucigalpa  is  the  most 
important  city  in  that  portion  of  the  republic,  but  if  the  traveler 
has  penetrated  so  far  inland,  it  will  be  advisable  to  visit  Comayagua, 
the  center  of  an  important  agricultural  and  mining  district.  Agen- 
cies should  be  established  in  Tegucigalpa,  but  only  for  the  adjacent 


APPENDIX  437 

territory  and  not  for  the  ports  on  the  Caribbean  Sea,  wliich  are  prac- 
tically inaccessible  from  there. 

Railroads  and  Transportation. — The  principal  railways  of  Hon- 
duras are  on  the  east  coast  of  the  eastern  section,  serving  princi- 
pally the  fruit  regions.     The  total  is  150  miles. 

Articles  Now  Needed. — One  of  the  opportunities  for  American 
commerce  in  Honduras  will  be  the  sale  of  certain  products  which 
have  heretofore  been  bought  in  Germany,  France,  and  Belgium. 
Among  the  more  important  of  these  are  the  following :  light  hard- 
ware and  cutlery,  tinned  meats,  confectionery,  beer,  crude  drugs  and 
chemicals,  safety  matches,  ordinary  soaps,  dyes,  paper,  heavy  chemi- 
cals, canned  goods  and  vegetables,  rice,  condensed  milk,  iron  roofing, 
iron  construction  materials,  paint  and  oils,  cotton  goods  and  prints, 
woolen  manufactures. 

Foreign  Commerce  of  Honduras  in  Values 

Imports  Exports  Total 

1911-1912 $4,317,314  $3,080,178  $7,397,492 

1912-1913 5,132,678  3,200,254  8,432,032 

1913-1914 6,624,930  3,421,331  10,046,261 

Distribution  of  Foreign  Trade  (four  principal  commercial  countries) 

1912-1913 

Imports  Exports 

United  States $3,457,074  $2,869,188 

United  Kingdom 712,750  13,467 

Germany 558,327  176,112 

France 148,280         

1913-1914 

United  States $5,262,043  $2,914,157 

United  Kingdom 459,762  17,896 

Germany 521,837  164,607 

France 141,597 


THE  REPUBLIG  OP  MEXICO 

Language. — Spanish. 

Area. — 767,097  square  miles. 

Population.— 16,000,000. 

Capital. — Mexico  City;  population  500,000. 

Area  Square  Miles  Population  Population  Per  Square  Mile 

767,097  16,000,000  20.13 


438 


APPENDIX 


Year 


Foreign  Commerce 
Total  Imports  Imports  from  United  States  Total  Exports    Exports  to  United  States 


1913 


Dollars 
93,020,000 

Imports 


Dollars 
44,510,000 

Exports 


Per  Cent. 

47.8 


Dollars 
129,971,000 


Dollars 
98,544,000 


Per  Cent. 
75.8 


Per  Capita 
Revenue       Expenditure 


Debt 


Interest 


Dollars 

Dollars             Dollars 

Dollars 

Dollars 

Dollars 

6.02 

8.41                  4.18 

4.55 

14.06 

.89 

Length  of  Railways 

Telegraphs 

Railroads 

Telegraphs 

Date 


Miles        Date 


Length 

Length 

Miles 

Miles 

Per  10,000 

Per  1,000 

of  Line 

of  Wire 

of 

of 

Inhabit- 

Square 

per  10,000 

per  10,000 

Line 

Wire 

ants 

Miles 

Inhabit- 

Inhabit- 

1912         16,103        1912        22,452      46,137  10.4  21.0 

Revenue  and  Expenditure 
Year  Revenue  Expenditure 


Funded 


Dollars 
1913-14  64,544,000 

Debt 
Unfunded,  Including 
Floating  Non-interest- 
bearing,  Etc. 


Dollars 
70,296,000 


Total 
in  U.  S 
Currency 


14.5 


30.1 


Rates      Interest  and 
of       Other  Annual 
Interest       Charges 


Currency           Amount           Currency 
Pesos 453.960,000     Pesos 


Amount         Dollars       Per  Cent.       Dollars 
007,000  .   226,404,000        3-5         13,761,000 


Location. — The  republic  of  Mexico  lies  immediately  south  of  the 
United  States,  is  bounded  on  the  north  by  the  United  States,  on  the 
east  by  the  Atlantic  Ocean,  on  the  south  by  Guatemala,  on  the  west 
by  the  Pacific  Ocean. 

Area  and  Physical  Characteristics. — The  area  of  Mexico  is  767,- 
097  square  miles,  including  islands.  The  chief  physical  characteris- 
tics are  the  two  mountain  chains  which  traverse  the  republic  from 
northwest  to  southeast.  Between  these  there  are  vast  plateau  regions 
of  different  altitudes  and  numerous  fertile  valleys.  The  largest  of 
the  plateaus  is  that  on  which  is  located  the  City  of  Mexico, 

Climate. — The  climate  varies  according  to  location  and  altitude. 
Much  of  Mexico  is  tropical  but  a  large  part  is  temperate,  particu- 
larly that  part  of  the  country  represented  by  the  plateaus.  There  are 
several  extinct  volcanoes  of  considerable  height.  Along  the  coast 
in  the  southern  i^art  of  Mexico  the  climate  is  tropical,  being  hot 
and  moist.  This  also  applies  to  the  coastal  regions  of  the  Pacific. 
On  the  plateaus  the  temperature  is  very  moderate,  in  Mexico  City 
the  mean  annual  temperature  being  around  08  degrees.  There  are 
two  seasons,  the  wet  and  the  dry,  otherwise  known  as  winter  and 


APPENDIX  439 

summer.  The  rainfall  varies  materially,  but  in  some  parts  it  is 
extremely  hea^-y- 

Population. — The  latest  estimate  gives  Mexico  a  population  of 
between  fifteen  and  sixteen  millions.  Of  these,  about  twelve  mil- 
lions represent  the  peon  or  peasant  class,  the  balance  of  the  popu- 
lation being  divided  between  the  Mestizos  and  pure  whites.  Euro- 
pean nations  and  the  United  States  have  been  well  represented  in 
all  the  principal  cities  of  the  republic  and  in  many  of  the  outlying 
districts  where  important  construction,  mining,  and  other  indus- 
trial enterprises  have  been  carried  on. 

Purchasing  Power  of  the  Different  Classes. — In  Mexico  the  pur- 
chasing power  per  capita  varies  materially.  This  applies  even  to  the 
peon  class.  In  the  northern  part  where  higher  wages  have  been 
paid,  the  native  has  been  able  to  purchase  many  articles  which  would 
ordinarily  be  considered  luxuries.  The  upper  classes  have  always 
been  large  purchasers  of  all  the  luxuries  and  the  latest  developments 
of  science  and  manufacture.  In  the  outlying  districts  the  purchases 
of  the  natives  have  been  confined  largely  to  staple  necessities  which 
are,  however,  now  being  largely  produced  within  the  country. 

Chief  Resources. — Mexico  is  a  wonderfully  wealthy  country  from 
every  standpoint,  agricultural,  mineral,  timber,  etc. 

Agricultural  Industries. — The  agricultural  industries  of  the  re- 
public are  concerned  with  the  raising  of  cereals,  corn,  wheat,  etc. 
There  are  also  produced  numerous  tropical  products  including  fruit, 
coffee,  tobacco,  sugar,  etc.  The  growth  of  henequen,  or  the  fiber 
known  as  sisal,  is  the  chief  industry  of  Yucatan.  Chicle,  the  basis 
of  chewing  gum,  is  an  important  product.  Guayule,  artificial  rub- 
ber, is  also  widely  cultivated. 

Live  Stoch  Industry. — The  raising  of  cattle,  sheep,  and  goats  runs 
into  many  millions,  while  the  production  of  hogs,  horses,  mules,  etc., 
is  likewise  growing.  The  exports  of  goatskins  and  hides  run  into 
the  millions. 

Mining. — One  of  the  chief  industries  of  Mexico  is  mining,  which 
represents  an  enormous  investment  of  capital,  American,  English, 
French  and  Mexican.  The  exports  of  the  leading  metals,  including 
silver,  gold,  copper,  and  lead,  exceed  $80,000,000  annually,  silver 
being  the  leading  export.  Gold  and  copper  are  becoming  increas- 
ingly important  items  of  export,  while  the  development  of  the  oil 
fields  in  southern  Mexico  is  phenomenal.  In  the  northeastern  por- 
tion of  the  republic  the  output  of  coal  and  coke  is  increasing  in 
importance. 

Manufacturing  Industries. — The  republic  has  been  steadily  ad- 
vancing  in   manufacturing.      Native   cotton   is   being   utilized   to   a 


440  APPENDIX 

constantly  growing  extent.  Among  the  other  manufacturing  activi- 
ties are  cigar  and  cigarette  factories,  breweries,  sugar  mills,  paper 
mills,  woolen  mills,  bag  factories,  soap  factories,  packing  plants,  shoe 
factories,  candy  factories,  furniture  factories,  flour  mills,  tanneries, 
electric  light  and  power  plants,  nail  factories,  etc.  The  outlook  for 
manufacturing,  particularly  of  the  smaller  manufactures,  is  ex- 
tremely bright. 

Principal  Cities. — Mexico  has  a  very  large  number  of  cities  whose 
merchants  are  able  to  import  direct.  Some  of  the  principal  ones 
are  as  follows:  Northern  Mexico — Saltillo,  state  of  Coahuila,  popu- 
lation 25,000;  Torreon,  Coahuila,  40,000;  Durango,  capital  of  Du- 
rango,  35,000;  Chihuahua,  40,000;  Ciudad  Juarez,  10,000. 

Atlantic  Coast  and  Southeast — Vera  Cruz,  30,000;  Cordoba,  9,000; 
Orizaba,  33,000;  Jalapa,  25,000;  Tampico,  25,000;  San  Luis  Potosi, 
70,000. 

Central  Mexico — Zacatecas,  26,000;  Aguascalientes,  50,000;  Guana- 
juato, 40,000;  Queretaro,  35,000;  Guadalajara,  120,000. 

Northwestern  Mexico — Hermosillo,   15,000;   Guaymas,  13,000. 

Western  Mexico — Colima,  25,000;  Manzanillo,  2000;  Mazatlan, 
25,000. 

Southern  Mexico — San  Juan  Bautista,  30,000;  Campeche,  20,000; 
Merida,  50,000;  Progreso,  15,000. 

Southern  Central  Mexico— Puebla,  100,000;  Toluca,  32,000;  Mo- 
relia,  41,000;  Oaxaca,  40,000;  Mexico  City,  500,000. 

Besides  these,  there  are  numerous  others  which  are  worthy  of  a 
visit.  In  many  cases  the  community  may  not  be  very  large  nu- 
merically, but  the  town  is  important  from  the  standpoint  of  com- 
merce and  because  of  the  possible  purchases  of  large  corporations 
which  may  be  there  located. 

Railways. — The  republic,  until  the  outbreak  of  the  revolution,  was 
well  served  by  many  railroads.  With  the  reestablishment  of  order, 
a  return  to  the  previous  excellent  conditions  is  unquestioned. 

How  Best  to  Canvass  the  Republic. — ^When  normal  conditions 
prevail,  the  purchasing  power  of  Mexico  is  phenomenal.  The  routes 
that  may  be  followed  by  a  traveling  representative  are  innumerable 
and  depend  only  upon  the  time  at  his  disposal,  the  possibilities 
of  the  sale  of  his  product,  and  the  number  of  merchants  who  must 
be  called  upon.  Mexico  can  be  entered  by  any  of  the  border  cities, 
Nuevo  Laredo,  Eagle  Pass,  or  El  Paso.  It  can  also  be  entered  from 
Vera  Cruz  or  Tampico.  All  of  the  cities  mentioned  above  are  worthy 
of  visits,  in  addition  to  a  great  many  other  smaller  communitie? 
that  will  be  found  en  route.  For  a  first  trip  it  may  be  well  to  visit 
only  the  more  important  places  and  the  conditions  which  will  be 


APPENDIX  441 

found  will  determine  future  action.  As  in  every  Latin  American 
country,  inquiry  should  be  made  of  fellow  travelers,  of  merchants, 
railroad  officials,  hotel-keepers,  etc.,  regarding  the  prospects  for  sales 
in  towns  or  communities  between  the  more  important  cities.  Mexico, 
when  conditions  are  normal,  offers  a  wonderful  field  for  American 
enterprise. 

Foreign  Commerce  in  Values 

Imports  Ejcports  Total 

1910-1911 $103,937,136      $146,876,819      $249,813,955 

1911-1912 91,331,155         148,994,564        240,325,719 

1912-1913 97,886,169         150,202,808        248,088,977 

Distribution  of  Foreign  Trade  (Jour  principal  commercial  countries) 
1911-1912 

Imports  Exports 

United  States $49,212,836  $112,729,856 

United  Kingdom 10,753,154  20,099,328 

Germany 11,922,609  5,158,365 

France 7,809,138  4,164,911 

1912—1913 

United  States $48,643,778  $116,017,854 

United  Kingdom 15,573,552 

Germany 8,219,009 

France 3,575,509 

THE  REPUBLIC  OF  NICARAGUA 

Language. — Spanish.  In  Bluefields  there  is  one  newspaper  in  Eng- 
lish and  one  in  Spanish.  The  former  reaches  the  merchants  and  min- 
ing companies. 

Currency. — The  value  of  the  Nicaraguan  silver  peso  on  January  1, 
1912,  was  given  by  the  United  States  Treasury  Department  as  $0.40. 
The  actual  currency  of  the  country  is  inconvertible  paper,  which 
fluctuates  widely  in  value.  Peso:=100  centavos;  real^l2l/'2  centavos; 
medio  real:^6^  centavos. 

^V eights  and  Measures. — The  metric  is  the  legal  system.  Old  Span- 
ish weights  and  measures  still  commonly  used  in  local  trade  are  the 
vara=33  inches,  and  the  arroba=25.35  pounds. 

Postage. — Postal  Union  rates.     Parcel  post. 

Area  Square  Miles  Population  Population  Per  Square  Mile 

49,532  600,000  12.31 

Foreign  Commerce 
Year       Total  Imports  Imports  from  United  States  Total  Exports     Exports  to  United  States 

1913 


Dollars 

Dollars 

Per  Cent. 

Dollars 

Dollars 

Per  Cent. 

5,768,000 

3,244,000 

56.2 

7,712,000 

2.722,000 

35.3 

442 


APPENDIX 


Per  Capita 


Imports 

Exports           Revenue 

Expenditure 

Debt 

Interest 

Dollars 

Dollars             Dollars 

Dollars 

Dollars 

Dollars 

8.36 

11.18                 2.20 

1.74 

13.32 

.57 

Length  of  Railways 

Telegraphs 

Railroads 

Telegraphs 

Date 


Miles        Date 


Miles 

of 
Line 


Miles 

of 
Wire 


Per  10,000 
Inhabit- 
ants 


Per  1,000 
Square 
Miles 


Length 
of  Line 
per  10,000 
Inhabit- 
ants 


Length 
of  Wire 
per  10,000 
Inhabit- 
ants 


1913 


200 


1913 


Funded 


3,637  2.9 

Debt 
Unfunded,  Including 
Floating  Non-interest- 
bearing,  Etc. 


52.7 


Total  Rates     Interest  and 

in  U.  S.  of       Other  Annual 

Currency      Interest       Charges 


Currency 
£  Sterling . .  . 


Amount 
1,192,000 


Currency 
Cordobas .... 
Pesos,  paper . 


Amount 
2,631,000 
9,500,000 


Dollars 
9,189,000 


Per  Cent. 
6 


Dollars 
394,000 


Location,  Area,  and  PJiysical  Characteristics. — Nicaragua  is  the 
largest  of  the  Central  American  republics,  extending  over  an  area 
of  49,200  square  miles.  It  is  bounded  on  the  east  by  the  Carib- 
bean Sea,  on  the  south  by  the  republic  of  Costa  Rica,  on  the  west 
by  the  Pacific  Ocean,  and  on  the  north  by  Honduras.  The  republic 
is  traversed  by  two  mountain  ranges,  and  a  unique  feature  is  the  two 
great  fresh-water  lakes— Nicaragua,  which  is  92  miles  long  by  34 
miles  wide,  and  Managua,  which  is  32  miles  long  and  16  miles  wide. 
The  lowlands  at  the  ocean  are  very  warm,  but  the  uplands  and  the 
terrace  or  plateau  regions  have  a  delightful  climate  which  becomes 
cold  in  the  higher  altitudes  and  on  the  volcanic  peaks  which  are  a 
marked  feature  of  the  country. 

Population. — The  population  is  estimated  at  600,000,  or  12  per 
square  mile.  The  great  hu\k  of  the  inhabitants  are  Indians,  but  the 
residents  of  the  cities  are  largely  of  mixed  Indian  and  Spanish 
descent. 

Purchasing  Power. — Because  of  the  recent  conditions  which  have 
been  so  unfavorable  to  commerce  generally,  the  imports  and  exports 
of  Nicaragua  have  not  reached  the  per  capita  volume  of  those  of 
the  neighboring  republics,  but  with  a  fair  degree  of  prosperity  these 
would  grow  materially. 

Resources. — The  resources  of  Nicaragua  are  agricultural,  mineral, 
and  forestal.  The  chief  export  is  coffee,  which  commands  a  good 
])rice  in  the  markets  of  the  world,  particularly  the  coffee  of  the  dis- 
tricts of  Matagalpa.  Another  important  agricultural  product  is 
sugar,  for  the  raising  of  which  the  soil  and  climate  are  particu- 
larly appropriate,  especially  in  the  part  near  the  coast.    Banana  rais- 


APPENDIX  443 

ing  is  a  very  important  industry  in  the  eastern  part  of  the  republic 
where  the  area  devoted  to  the  production  of  the  crop  is  being  rapidly 
increased  by  the  United  Fruit  Company.  The  production  of  cacao 
is  also  growing.  There  is  but  little  exported  on  account  of  the 
large  home  consumption.  Other  crops  that  are  produced  are  to- 
bacco, corn,  rice,  beans,  etc.  The  timber  industry  is  important,  con- 
sisting principally  of  mahogany  and  cedar  from  forests  in  the  eastern 
part.  Cattle  raising  is  growing  in  importance,  and  an  increasing 
number  of  hides  are  exported  annually. 

•  Mining. — Nicaragua  has  a  number  of  gold  mines  and  mining  oper- 
ations have  been  commenced  by  various  English  and  American  com- 
panies. In  the  eastern  part  of  the  country,  near  Princapulca,  there 
are  many  placer  mines  which  have  been  productive.  The  exports 
of  gold  have  been  in  the  neighborhood  of  one  million  dollars  an- 
nually. 

Industries. — The  industries  of  Nicaragua  are  in  general  very  small 
and  confined  to  the  manufacture  of  articles  for  domestic  consump- 
tion. These  are  tanneries,  and  small  factories  in  which  are  made 
furniture,  bricks,  hats,  shoes,  ice,  soap,  cigars,  etc. 

Principal  Cities. — The  principal  cities  of  Nicaragua  are: 
Managua,  36,000;  Leon,  65,000;  Granada,  18,000;  Matagalpa, 
6000;  Bluefields,  4800;  Eivas,  14,000;  Chinandaga,  11,000; 
Corinto,  4000. 

Best  Method  of  Canvassing  the  Republic. — The  capital  is  reached 
via  Puerto  Corinto  on  the  west  coast,  at  which  steamers  land  from 
both  the  North  and  the  South.  Travelers  generally  go  direct  to 
the  capital,  finding  it  advantageous  to  make  this  their  headquarters, 
as  many  of  the  important  commercial  houses  of  the  republic  are 
located  there.  For  many  lines  of  manufacture  the  merchants  of 
Granada  find  it  advantageous  to  make  direct  importations,  and  this 
is  also  the  case  in  Leon,  which  is  generally  "made"  after  Managua 
by  the  commercial  travelers  who  visit  Nicaragua.  This  city  is  quite 
important  and  being  larger  than  Managua  it  affords  an  excellent  field 
for  business.  Matagalpa,  which  is  in  the  central  part  of  the  republic, 
among  the  hills,  is  the  headquarters  for  a  very  rich  coffee  and  cattle 
district  and  is  a  prosperous  place.  There  are  a  number  of  foreigners 
here  who  are  able  to  make  direct  importations.  At  Corinto  there 
are  several  commission  and  exchange  merchants  whom  it  may  be 
advantageous  to  consult.  There  is  another  very  prosperous  section 
in  the  east,  which  cannot  be  considered  in  connection  with  the 
western  or  central  portion  of  the  republic,  being  entirely  cut  off 
therefrom.  The  principal  towns  here  are:  San  Juan  del  Norte  or 
Grey  town,  Bluefields,  and  Gracias  a  Dios.     Besides  these  ports,  im- 


444  APPENDIX 

portations  are  made  by  dealers  in  Rama  and  Prinzapulca.  This  dis- 
trict is  covered  by  travelers  from  New  Orleans.  Steamers  make  the 
port  of  Cape  Cracias  regularly,  it  being  the  shipping  port  for  bananas 
and  for  the  mining  district  of  Pis  Pis.  Communication  between  the 
small  ports  is  had  by  motor  launches  and  schooners,  which  are  char- 
tered by  commercial  travelers  who  generally  represent  several  firms, 
the  expenses  being  high.  When  agencies  for  Nicaragua  are  granted, 
the  western  half  should  be  considered  entirely  apart  from  the  eastern 
or  Caribbean  side.  The  traveler  who  enters  by  way  of  Corinto  may 
find  it  well  to  stop  at  Chinandega,  and  also  to  go  to  Masaya,  both 
of  which  offer  fair  prospects. 

Railways  and  Transportation. — The  principal  railway  system  of 
Nicaragua  is  on  the  Pacific  side,  connecting  the  port  of  Corinto 
with  the  cities  of  the  interior,  including  the  capital,  etc.  There  is 
some  transportation  on  the  rivers  where  navigable.  The  total  miles 
in  Nicaragua  number  about  200. 

Articles  Now  Needed. — One  of  the  opportunities  for  American 
manufacturers  is  afforded  by  the  sale  of  articles  which  have  hereto- 
fore been  bought  in  Europe.  These  are  the  following :  beer,  mineral 
waters,  cement,  cutlery,  tools,  implements,  paper,  books,  stationery, 
leather,  candles,  miscellaneous  cotton  goods  (including  ready-made 
clothing),  manufactures  of  linen,  enameled  and  tin  ware,  barbed  wire, 
rice,  canned  and  preserved  fruits,  drugs  and  chemicals,  dyes,  per- 
fumery and  toilet  articles,  glass  and  glassware. 

Foreign  Commerce  of  Nicaragua  in  Values 

Imports  Exports  Total 

1911 $5,724,685    $6,216,861    $11,941,556 

1912 4,966,820     3,411,208     8,378,028 

Distribution  of  Foreign  Trade  (Jour  principal  commercial  countries) 

1911 

Imports  Exports 

United  States 

United  Kingdom 

Germany 

France 

1912 

United  States 

United  Kingdom 

Germany 

France 


$2,754,940 

$1,703,481 

1,412,296 

523,100 

642,753 

1,074,744 

148,264 

2,619,240 

$2,549,026 

$1,328,422 

929,290 

514,774 

604,038 

701,881 

256,255 

626,083 

APPENDIX 


445 


THE  REPUBLIC  OF  PANAMA 

Language. — Spanish  and  Englisli.  Two  newspapers  are  published 
in  Colon,  both  English,  and  two  in  Panama,  the  latter  having  both 
English  and  Spanish  sections. 

Currency. — Gold  balboa=$l ;  silver  pesoz=:$0.50. 

Weights  and  Measures. — Metric  system.  American  weights  and 
measures  are  also  used. 

Postage. — Articles  addressed  for  delivery  in  the  republic  of  Pan- 
ama are  subject  to  the  same  postage  rates  and  conditions  as  would 
apply  to  them  if  they  were  addressed  for  delivery  in  the  United 
States,  except  that  (1)  printed  matter,  samples,  and  commercial  pa- 
pers may  be  sent  subject  to  the  postage  rates,  weight  limit,  and  other 
conditions  applicable  to  similar  articles  in  Postal  Union  mails;  (2) 
articles  other  than  letters  in  their  usual  and  ordinary  form  are 
excluded  from  the  mails,  unless  they*  are  so  wrapped  that  their  con- 
tents can  be  easily  examined  by  postmasters  and  customs  officers.  No 
parcel  post. 


Area  Square  Miles 


Population 


Population  Per  Square  Mile 


32,380 


11.95 


Year 


387,000 

Foreign  Commerce 
Total  Imports  Imports  from  United  States  Total  Exports    Exports  to  United  States 


1912 


Dollars 
9,872,000 

Imports 


Dollars 
5,413,000 


Per  Cent. 
54.8 


Dollars 
2,065,000 


Dollars 
1,780,000 


Per  Cent. 
86.2 


Exports 


Per  Capita 
Revenue       Expenditure 


Debt 


Interest 


Dollars 

Dollars             Dollars 

Dollars 

Dollars 

Dollars 

25.51 

5.34                  9.92 

9.92 

.13 

.01 

Length  of  Railways 

Telegraphs 

Railroads 

Telegraphs 

Length           Length 

Miles        Miles 

Per  10,000 

Per  1,000 

of  Line          of  Wire 

Date        Miles       Date 

of              of 

Inhabit- 

Square 

per  10,000     per  10,000 

Line         Wire 

ants 

Miles 

Inhabit-         Inhabit- 
ants               ants 

1913           298 

7.7 
Debt 

9.2 

Unfunded, 

Including 

Total 

Rates     Interest  and 

Funded 

Floating  Non-Interest- 

in  U.  S. 

of       Other  Annual 

bearing 

,  Etc. 

Currency 

Interest       Charges 

Currency            Amount 

Currency 

Amount 

Dollars 

Per  Cent.       Dollars 



Dollars 

51,000 

51,000 

7                4,000 

Location  and  Area. — The  Isthmus  of  Panama  links  the  Americas. 
The  area  is  32,800  square  miles.     Its  greatest  length  is  425  miles, 


446  APPENDIX 

average  width  YO  miles.  It  joins  Costa  Rica  on  the  west  and  Colom- 
bia on  the  east.  Its  northern  boundary  is  the  Caribbean  Sea,  and 
the  southern  the  Pacific  Ocean. 

Physical  CJiaracteristics. — Within  the  boundary  is  inclosed  a 
series  of  valleys,  plains  and  streams.  In  general,  the  country  is 
very  mountainous,  one  peak  reaching  an  altitude  of  over  11,000  feet. 
There  are  numbers  of  streams,  some  of  which  are  navigable  for  a 
part  of  their  length  by  small  boat-. 

Climate. — Along  the  coasts,  the  climate  is  tropical.  The  interior, 
because  of  elevation,  is  very  agreeable  and  temperate.  The  seasons 
are  wet  and  dry,  the  former  beginning  about  the  first  of  April  and 
lasting  until  the  end  of  December. 

Population. — By  the  estimate  of  January  1,  1915,  the  population  is 
405,000.  In  general  it  is  similar  to  that  of  Colombia,  being  to  a 
considerable  extent  mixed,  the  descendants  of  Spanish  and  native 
intermarriages.  Along  the  coasts  and  in  the  banana  districts  there 
are  many  Jamaica  negroes,  while  in  the  interior  districts  there  are 
some  aborigines.  In  the  larger  cities  all  the  European  nations  are 
represented,  besides  China  and  Japan.  The  Americans  naturally 
dominate  because  of  the  construction  of  the  Panama  Canal. 

Physical  Characteristics. — Within  the  boundary  is  inclosed  a 
variety  of  purposes.  The  development  of  the  resources  of  the  repub- 
lic influences  the  purchase  of  modern  implements  and  machinery, 
while  the  earning  iwwer  of  the  ordinary  classes  is  such  that  the  re- 
public offers  an  excellent  field  for  American  manufactures  in  general. 

Resources. — The  resources  are  chiefly  agricultural,  the  principal 
exports  being  bananas,  coconuts,  and  ivory  nuts.  The  exports  of 
bananas  are  fast  becoming  the  chief  source  of  wealth,  particularly 
from  the  Chiriqui  district  controlled  by  the  United  Fruit  Company. 

0 titer  Besources. — Aside  from  the  agricultural  resources,  there  is 
a  considerable  business  in  timber,  hides,  rubber,  and  miscellaneous 
products.  The  raising  of  stock  is  being  encouraged  and  sugar,  to- 
bacco, and  other  products  are  also  being  produced.  The  export  of 
pearls,  for  which  Panama  has  long  been  famous,  is  also  increasing. 
The  pearl  island  district  is  said  to  be  one  of  the  chief  sources  of 
the  world's  supply. 

Mineral  Wealth. — The  mineral  wealth  of  Panama  is  being  located, 
as  many  deposits  of  precious  metals  are  known  to  exist,  and  the  out- 
look is  very  promising. 

Industries. — The  principal  industries  of  the  republic  are  sugar 
mills  and  the  usual  by-products  There  are  also  various  other  fac- 
tories to  satisfy  local  demands,  including  a  brewery,  the  manufac- 
ture of  straw  hats,  candles,  etc. 


APPENDIX  447 

Principal  Cities. — In  the  order  of  importance  the  principal  com- 
mercial places  of  Panama  are:  City  of  Panama,  population  40,000; 
Colon  and  Christobal,  19,000;  Bocas  del  Toro,  7000;  David,  13,000. 

Best  Metliod  of  Canvassing  the  Republic. — Panama  is  reached 
by  numerous  steamship  lines  which  touch  at  both  the  Atlantic  and 
Pacific  ports.  On  the  Atlantic  side  the  most  frequent  sailings  are 
from  New  Orleans  and  New  York,  but  other  American  ports  are 
also  made.  On  the  Pacific  coast  there  is  connection  with  the  Chilean, 
Peruvian,  Pacific  Steam  Navigation  Company  and  the  Pacific  Mail 
Line.  Traveling  men  usually  find  it  profitable  to  canvass  both  Colon 
and  Panama  and  it  is  immaterial  which  is  visited  first.  When  nec- 
essary to  establish  agencies,  either  port  ofi'ers  good  facilities.  Bocas 
del  Toro  is  another  important  commercial  place,  the  headquarters 
for  the  United  Fruit  Company  which  maintains  a  large  hospital, 
commissary,  etc.  This  place  can  be  reached  either  direct  from  Gulf 
ports  or  by  steam  launches  from  Colon,  to  which  travelers  generally 
return.  The  city  of  David  is  the  most  important  place  in  the  inte- 
rior and  it  will  soon  be  in  direct  touch  with  Panama  by  railroad. 
Certain  commercial  firms  there  can  make  direct  importations  and  can 
also  accept  agencies  when  it  is  necessary  to  have  these  widely  dis- 
tributed. Most  of  the  other  towns  depend  iipon  Panama  or  Colon 
for  supplies  and  the  representatives  of  commercial  houses  in  these 
places  canvass  the  republic  regularly. 

Railroads  and  Transportation. — The  principal  railways  connect 
Colon  and  Panama.  There  are  some  extensions  to  commercial  cen- 
ters and  the  new  railroad  is  being  constructed  to  David.  The  total 
of  miles  now  in  operation  is  about  160  miles.  The  new  road  will  be 
about  360  miles. 

Articles  Now  Needed. — One  of  the  opportunities  of  the  American 
manufacturers  is  afforded  by  the  sale  of  articles  which  have  hitherto 
been  bought  exclusively  in  Europe,  or  the  sale  of  which  the  Euro- 
pean nations  have  controlled.  The  principal  articles  of  this  char- 
acter are  the  following :  rice,  condensed  milk,  candles,  nails,  earthen- 
ware, beer,  paint,  paper,  wrapping  paper,  dyes,  small  hardware,  fancy 
goods,  cotton  cloth,  canned  meats  and  fish,  ironware,  miscellaneous 
hardware,  glassware,  matches,  chemicals,  drugs  and  pharmaceutical 
products,  print  paper,  perfumery,  combs,  electrical  materials. 

Foreign  Commerce  of  Panama  in  Values 

Imports  Exports  Total 

1911 $9,896,988    $2,863,425    $12,760,413 

1912 9,871,617     2,064,648     11,936,265 

1913 10,000,000     2,467,566    12,467,556 


448  APPENDIX 

Distribution  of  Foreign  Trade  (Jour  principal  commercial  countries) 

1912 

Imports  Exports 

United  States $5,413,305  $1,779,660 

United  Kingdom 2,421,637  72,714 

Germany 957,806  202,152 

France 680,784  7,863 

1913 

United  States $5,483,678  $2,130,000 

United  Kingdom 3,450,000  86,000 

Germany 970,000  240,000 

France 690,000  9,000 

(The  figures  are  in  part  estimated) 

THE  REPUBLIC  OP  PARAGUAY 

Language. — Spanish  is  the  language  of  the  country,  but  Guarani, 
an  Indian  tongue,  is  widely  spoken  among  the  lower  classes,  espe- 
cially in  the  country.  Among  the  foreigners  at  Asuncion  one  hears 
considerable  German,  Italian,  and  French.  English  is  known  by  only 
a  few,  but  French  is  understood  by  the  majority  of  the  larger  mer- 
chants and  by  the  educated  native  classes. 

Currency. — Inconvertible  paper,  the  basis  for  which  is  the  Argen- 
tine gold  peso  valued  at  $0,965.  The  number  of  the  Paraguayan 
paper  pesos  required  to  equal  an  Argentine  gold  peso  has  ranged 
from  8  to  17  in  recent  years. 

Weights  and  Measures. — Metric  system  adopted  and  use  made 
obligatory. 

Postage. — Postal  Union  rates.  No  parcel  post  arrangement  with 
United  States. 


Area  Square  Miles  Population  Population  Per  Square  Mile 

97,722  800,000  8.19 

Foreign  Commerce 
Yeai       Total  Imports  Imports  from  United  States  Total  Exports    Exports  to  United  States 


Dollars 

Dollars          Per  Cent.             Dollars               Dollars          Per  Cent. 

1913             8,120,000 

488,000               6.0                5,631,000             67,000                1.2 

Per  Capita 

Imports 

Exports           Revenue       Expenditure          Debt              Interest 

Dollars  Dollars  Dollars  Dollars  Dollars  Dollars 

10.15  7.04  6.60  6.68  11.27  1.42 


APPENDIX 

449 

Length  of  Railways 

Telegraphs 

Railroads 

Telegraphs 

Length           Length 

Miles       Miles 

Per  10,000     Per  1,000 

of  Line          of  Wire 

Date         Miles       Da*e 

of              of 

Inhabit-          Square 

per  10,000     per  10,000 

Line         Wire 

ants               Miles 

Inhabit-         Inhabit- 
ants               ants 

1913 


1912    2,485   2,485 


2.4 


31.1 


31.1 


Year 


Revenue  and  Expenditure 

Revenue  Expenditure 


Funded 


Dollars  Dollars 

1914  5,280,000  5,348,000 

Debt 
Unfunded,  Including  Total 

Floating  Non-interest-  in  U.  S. 

bearing,  Etc.  Currency 


Rates     Interest  and 
of       Other  Annual 
Interest       Charges 


Currency  Amount  Currency  Amount  Dollars       Per  Cent.       Dollars 

£  Sterling 781,000      Pesos,  gold. . .  868,000      9,020,000  3-7  1,133,000 

Pesos,  paper.  .     81,625,000 

Location,  Area,  Physical  Characteristics. — The  republic  of  Par- 
aguay is  the  second  South  American  country  without  seacoast.  It 
is  bounded  on  the  north  by  Brazil,  on  the  east  by  the  Argentine  Re- 
public, on  the  south  and  west  by  Argentina.  The  republic  is  largely 
a  plain  of  which  the  most  striking  feature  is  the  Gran  Chaco.  There 
are  several  mountain  ranges  and  a  very  extensive  system  of  rivers. 
The  climate  varies  materially  from  the  subtropical  to  the  temperate 
zone,  being  influenced  largely  by  altitude.  The  mean  annual  tem- 
perature of  the  capital  is  72  degrees  and  the  variation  does  not 
exceed  9  degrees. 

Population. — The  population  of  Paraguay,  estimate  of  1910,  was 
800,000,  or  4.6  per  square  mile.  The  largest  percentage  of  people 
are  Mestizos  and  there  are  about  100,000  wild  Indians.  The  better 
classes  are  chiefly  descendai)ts  of  the  Spaniards,  with  a  mixture  of 
native  blood,  and  are  naturally  found  in  the  capital  and  other  prin- 
cipal cities. 

Purchasing  Power. — The  purchasing  power  of  Paraguay  is  grow- 
ing as  a  result  of  the  development  of  the  resources  of  the  republic 
and  particularly  of  the  live  stock  industry.  The  principal  oppor- 
tunity for  American  manufacturers  lies  in  the  supplying  of  ma- 
chinery, materials,  and  supplies  used  in  the  various  industries  and 
also  for  the  requirements  of  the  better  classes.  There  is  also  a  field 
for  the  sale  of  staples  in  clothing  for  the  lower  classes. 

Resources. — The  chief  resources  of  Paraguay  are  agricultural  and 
animal  products.  The  chief  exports  are  hides,  mate  or  Paraguay  tea, 
timber,  tobacco,  oranges,  and  other  fruits.     The  raising  of  agricul- 


450  APPENDIX 

tnral  products  is  increasing  with  the  development  of  the  country  and 
the  outlopk  for  the  future  is  especially  bright. 

Indv^stries. — The  industries  of  Paraguay  are  practically  negligible 
and  confined  principally  to  the  animal  industry.  Naturally  there 
are  certain  factories  for  the  manufacture  of  articles  needed  for 
local  consumption. 

Principal  Cities. — The  principal  cities  of  Paraguay  are  Asuncion, 
the  capital,  population  80,000,  1152  miles  inland  and  about  1000 
miles  distant  from  Buenos  Aires;  Villa  Encarnacion,  population 
15,000,  273  miles  southeast  of  Asuncion;  Villa  Rica,  popula- 
tion 26,000,  93  miles  from  Asuncion;  Villa  Concepcion,  population 
15,000,  205  miles  from  Asuncion;  Luque,  population  4500,  9  miles 
from  Asuncion;  Carapegua,  population  4500,  02  miles  from 
Asuncion. 

Transportation  Facilities. — The  transportation  facilities  in  Par- 
aguay are  on  the  whole  very  primitive  and  the  roads  are  few.  There 
is  a  railroad  which  runs  from  Villa  Encarnacion  to  Asuncion,  and 
in  addition  there  are  a  number  of  projected  roads.  The  trip  is 
usually  made  on  the  Paraguay  River,  requiring  four  or  five  days. 
Merchandise  for  Asuncion  must  be  transshipped  at  Buenos  Aires  or 
Montevideo  and  must  be  placed  in  care  of  an  agent  at  one  of  these 
places  to  insure  its  forwarding  to  destination. 

Best  Method  of  Canvassing  the  Republic. — For  commercial  pur- 
poses, Asuncion  may  be  considered  the  one  really  important  place  in 
the  republic  and  should  be  made  the  headquarters  for  the  distribu- 
tion of  merchandise.  The  capital  can  now  be  reached  both  by  water 
and  by  rail.  The  journey  upstream  from  Buenos  Aires  requires  four 
or  five  days  on  the  steamer  and  two  days  and  two  nights  by  railway. 
The  traveler  who  visits  Paraguay  may  find  it  advantageous  also  to 
visit  Villa  Rica,  the  second  city  of  commercial  importance,  which  is 
the  center  of  a  very  important  agricultural  district.  Villa  Conception 
is  the  principal  business  place  in  northern  Paraguay  and  the  chief 
industries  are  grazing  and  the  raising  of  yerha  mate.  Villa  En- 
carnacion is  located  in  the  southern  part  of  the  republic  and  is  sur- 
rounded by  an  agricultural  and  grazing  district.  If  desirable  to 
establish  agencies  they  may  be  located  in  these  various  places  for  the 
purpose  of  shipping  to  surrounding  localities,  but  for  a  line  of  lim- 
ited possibilities  the  agency  may  be  placed  in  Asuncion  and  the  rest 
of  the  countries  worked  from  that  base. 

Railroads  and  Transportation. — The  river  systems  of  Paraguay 
make  transportation  comparatively  cheap,  as  the  River  Paraguay 
makes  numerous  places  available.  The  total  number  of  miles  of 
railroad  in  operation  is  232,  and  from  the  capital,  Asuncion,  to  Villa 


APPE?^DIX  451 

Encarnacion,  located  on  the  Upper  Parana,  connection  is  made  by- 
train  ferry  with  the  Argentine  system. 

Articles  Now  Needed. — One  of  the  opportunities  for  American 
commerce  in  Paraguay  will  be  the  sale  of  certain  products  which 
have  heretofore  been  purchased  chiefly  in  Europe,  especially  Ger- 
many, France,  and  England.  Among  the  more  important  of  these 
articles  are  the  following:  beer,  drugs,  light  hardware,  cutlery,  con- 
densed milk,  rice,  iron  and  construction  materials,  wire,  textiles, 
safety  matches,  cheese,  tinned  meats. 

Other  Articles  in  Demand. — In  addition  to  the  articles  outlined, 
the  following  would  have  a  demand :  sewing  machines,  typewriters, 
household  articles,  agricultural  implements,  etc. 

Foreign  Commerce  in  Values 

Imports  Exports  Total 

1911 $6,310,054  $4,703,358  $11,013,412 

1912 5,190,4S2  4,108,051  9.298,733 

1913 .  7,671,551  5,462,001  13,133,552 

Distribution  of  Foreign  Trade  (four  principal  commercial  countries) 

Imports  Exports 

J913 

Germany $1,508,737  $847,829 

United  Kingdom 1,301,454  1,018 

France 366,778  33,199 

United  States 306,467  693 

1913 

Germany $2,200,000  $1,198,686 

United  Kingdom 1,800,000  200 

France 537,000  33,069 

United  States 450,000  70 

Note. — In  the  Distribution  of  Imports  for  the  year  1913  above,  the  figures  given  are 
partly  estimates.  More  than  half  of  the  exports  of  Paraguay  are  to  Argentina,  either  for 
consumption  in  that  country  or  for  trans-shipment  to  Euroj^e. 


THE  REPUBLIC  OF  PERU 

Language. — Spanish  is  the  national  language;  but  among  the  great 
Indian  population  there  are  many  native  dialects,  the  Quechua  being 
the  most  common.     The  chief  importers  are  European. 

Currency. — The  libra,  or  Peruvian  pound,  is  equivalent  to  the 
pound  sterling,  or  $4.8665.  Libra=10  soles,  sol=100  centavos.  The 
libra  is  abbreviated  Lp.  Thus,  1000  Peruvian  pounds  is  written 
Lp.  1000.  Sometimes  the  sign  L  is  used  with  the  letter  P  or  the 
word   Peruvian.     The  sign  $  is  used  to  designate  soles. 

Weights  and  Measures. — The  metric  is  the  legal  system.  In  the 
retail  tntde  the  following  are  still  used:  Vara=32.91  inches,  arroba::^ 
25.36  pounds,  libra=:1.014  pounds, 


452 


APPENDIX 


Postage. — Postal    Union    rates. 
United  States. 


Parcel    post    arrangement    witlv 


1913 


Area  Square  Miles 


Population 


Population  Per  Square  Mile 


683,321 


8.49 


5,800,000 
Foreign  Commerce 
Year       Total  Imports  Imports  from  United  States  Total  Exports    Exports  to  United  States 


Dollars 
29,631,000 

Imports 


Dollars 
8,542,000 


Per  Cent. 
28.8 


Dollars 
44,469,000 


Dollars 
14,761,000 


Per  Cent. 
33.2 


Exports 


Per  Capita 
Revenue      Expenditure 


Debt 


Interest 


Dollars 

Dollars             Dollars 

Dollars             Dollars 

Dollars 

5.11 

7.67                  2.98 

2.61                  5.91 

.09 

Length  of  Railways 

Telegraphs 

Railroads 

Telegraphs 

Date 


Miles       Date 


Length 

Length 

Miles 

Miles 

Per  10,000 

Per  1,000 

of  Line 

of  Wire 

of 

of 

Inhabit- 

Square 

per  10,000 

per  10,000 

Line 

Wire 

ants 

Miles 

Inhabit- 

Inhabit- 

1912 


1,719 


3.0 


2.5 


1912         9,321       34,589 

Revenue  and  Expenditure 
Year  Revenue  Expenditure 


16.1 


69.6 


Funded 

1914 

Dollars 
17,266,000 

Debt 
Unfunded,  Including 
Floating  Non-interest- 
bearing,  Etc. 

Dollars 
15,134,000 

Total 
in  U.  S. 
Currency 

Rates     Interest  and 
of       Other  Annual 
Interest       Charges 

Currency  Amount  Currency  Amount  Dollars       Per  Cent.       Dollars 

£  SterUng 1,688,000     £  SterUng .  . .       5,354,000     34,268,000       1-53^         542,000 

Location,  Area,  Physical  Characteristics. — Peru  is  one  of  the  larg- 
est countries  of  South  America,  with  an  area  of  about  690,000 
square  miles.  It  is  bounded  on  the  north  by  Ecuador,  on  the  east  by- 
Brazil  and  Bolivia,  on  the  south  by  Chile,  on  the  west  by  the  Pacific 
Ocean.  The  republic  has  in  general  three  regions,  but  the  greater 
part  of  the  country  consists  of  forest-covered  plains  in  the  east, 
stretching  toward  the  Atlantic  from  the  Andes.  The  second  region  is 
an  elevated  plateau  between  the  two  Andes  mountain  chains,  and 
on  the  west,  along  the  shore,  is  a  strip  of  arid  land  with  an  average 
width  of  25  miles.  There  are  numerous  extremely  high  peaks  and 
several  important  river  systems  which  drain  into  the  Atlantic 
Ocean.  Lake  Titicaca  is  the  largest  lake  in  South  America,  located 
at  an  altitude  of  12,000  feet.  Tbe  climate  in  the  low  coast  regions 
is  temperate  and  the  rainfall  is  practically  negligible;  frequently  irri- 


APPENDIX  453 

gation  is  necessary.  The  mean  annual  temperature  of  Lima  is  66 
degrees. 

Population. — The  population  of  Peru  is  about  5,800,000  inhabitants, 
or  8.5  to  the  square  mile.  About  15  per  cent,  are  pure  white,  more 
than  a  half  are  Indians,  more  than  a  quarter  are  Mestizos,  and  of 
Chinese  there  are  2  per  cent.  The  workers  of  Peru  are  the  descend- 
ants of  the  Incas,  and  are  commonly  called  Cholos.  They  are  ex- 
cellent workers  both  in  the  field  of  agriculture,  and  in  mining. 

Purchasing  Power. — The  imports  of  the  republic  have  been  growing 
steadily  and  the  resources  of  the  country  are  being  developed  to 
a  constantly  larger  extent.  The  requirements  of  the  lower  classes, 
while  small,  are,  in  the  aggregate,  as  regards  certain  important 
articles,  quite  large,  wliile  the  ability  of  the  wealthier  classes  to 
purchase  American  imported  products  is,  of  course,  great.  The 
opportunities  for  American  manufacturers  exist  in  the  sale  of  all 
the  appliances  used  in  the  development  of  the  industries  and  to  sup- 
ply the  personal  requirements  of  the  people. 

Resources. — The  resources  of  Peru  are  chiefly  mineral  and  agri- 
cultural. The  source  of  its  chief  wealth  is  mining  and  of  its 
mined  output  copper  is  the  most  important.  Silver,  gold,  and 
petroleum  are  also  largely  produced.  Of  its  agricultural  products, 
cotton  is  the  chief  export,  as  certain  particular  kinds  of  cotton 
are  now  raised  there  which  have  a  large  demand.  Sugar  is  an 
important  rival  of  cotton  and  the  agricultural  activities  of  the 
country  and  the  exports  have  amounted  to  $7,000,000.  Rice,  coffee, 
cacao,  tobacco,  and  cocoa  are  also  produced.  Of  forestal  products, 
rubber  is  the  chief  export  and  totals  over  $4,000,000.  This  is  shipped 
from  the  port  of  Iquitos  on  the  Amazon,  which  is  the  headquarters  of 
the  Peruvian  rubber  industry.  The  exportation  of  hard  wood  and 
other  timber  resources  has  been  delayed  by  the  lack  of  railways,  but 
is  growing. 

Mining. — Peru  is  famous  throughout  the  world  for  its  mineral 
wealth.  The  most  important  production  is  copper,  and  the  im- 
portance of  this  industry  is  due  largely  to  activities  of  famous 
American  concerns.  Gold  and  silver  mines  are  also  in  operation  and 
the  outlook  for  the  development  of  the  mining  resources  indicates 
immense  possibilities  for  American  manufacturers. 

Animal  Products. — The  production  of  animal  products  is  in- 
creasing, but  is  not  as  important  as  the  other  items  which  figure 
in  exports.  The  production  of  wool  is  on  the  increase  and  three- 
fourths  of  the  world's  supply  of  alpaca  comes  from  Peru.  The 
exports  of  hides,  goatskins  and  kidskins  are  also  increasing. 

Manufacturing     Industries. — The     manufacturing     industries    of 


454  APPENDIX 

Peru  are  not  of  general  imjiortance,  with  the  exception  of  the 
sugar  mills.  The  manufactvire  of  textiles  is  carried  on  to  some 
extent  while  other  industries  are  flour  mills,  factories  which  produce 
chocolate,  lard,  cottonseed  oil,  cocaine  and  certain  articles  intended 
for  local  consumption. 

Principal  Cities. — The  principal  cities  of  Peru  are  the  following: 
Lima,  population  160,000,  9  miles  from  its  port,  Callao;  Callao, 
400,000,  9  miles  from  Lima;  Arequipa,  40,000,  755  miles  southwest 
of  Lima;  Cerro  de  Pasco,  15,000,  110  miles  northeast  of  Lima; 
Cuzco,  640  miles  from  Lima ;  Ayacucho,  20,000,  357  miles  southeast  of 
Lima;  Piura,  15,000,  090  miles  northwest  of  Lima;  Cajamarea,  12,000, 
537  miles  north  of  Lima;  Trujillo,  10,000,  384  miles  northwest  of 
Lima;  Iquitos,  20,000,  1389  miles  from  Lima;  Mollendo,  5,000,  107 
miles  from  Arequipa;  Pisco,  5,000,  111  miles  from  Callao;  Eten, 
4,000;  Paita,  5,000,  480  miles  from  Callao;  Pacasmayo,  291  miles 
from  Callao ;  Huaraz,  17,000,  218  miles  from  Lima ;  Chiclayo,  15,000, 
517  miles  from  Lima;  Jauja,  15,000,  115  miles  east  of  Lima. 

The  Best  Method  of  Canvassing  the  Republic. — Peru  has  a  niimber 
of  important  ports,  the  most  important  of  which  is  Callao.  Travelers 
from  the  north  sometimes  stop  at  Paita,  which  is  connected  with 
Piura.  Salaverri,  which  is  an  important  place  of  export  because 
of  gold  mines  and  the  district  tributary  thereto,  may  also  be  visited 
to  advantage.  Callao  is  the  port  for  Lima,  consequently  the  most 
often  visited,  although  Mollendo  is  generally  included  in  the  itin- 
erary of  the  traveler,  particularly  if  it  is  the  intention  to  visit 
La  Paz.  It  is  found  that  Callao  and  Lima  are  the  most  important 
places,  although  when  it  is  desirable  to  establish  an  agency  it  is 
generally  located  in  Lima,  as  Callao  is  only  six  miles  distant  and 
easily  reached  by  electric  car.  From  Lima  the  traveler  will  find 
it  advantageous  to  visit  Cerro  de  Pasco,  whose  importance  is  due 
to  the  mining  operations  of  large  American  concerns.  From  Mol- 
lendo the  traveler  will  find  it  well  to  visit  Arequipa,  and  thence 
journey  to  Cuzco,  as  the  latter  is  situated  in  a  fertile  district.  The 
cities  mentioned  already  are  the  principal  ones,  but  the  traveler 
with  sufficient  time  would  find  it  advantageous  to  make  Trujillo, 
Piura,  Pacasmayo,  and  Eten.  Iquitos,  which  is  the  principal  river 
port  of  Peru,  cannot  be  reached  from  the  west  coast  but  must  be 
approached  from  the  Atlantic  via  the  Amazon  River.  A  Peruvian 
agency  established  in  Lima  should  not  include  Iquitos  for  obvious 
reasons.  Care  should  also  be  taken  to  investigate  the  ability  of  the 
Liman  agent  properly  to  work  the  rest  of  the  country,  inasmuch 
as  the  length  of  the  republic  is  over  1,400  miles. 

Railroads  and  Transportation. — The  principal  cities  of  Peru   are 


APPENDIX  455 

connected  by  railways,  the  total  number  of  miles  in  operation  being 
about  1,800.  Most  of  the  routes  are  owned  by  the  Peruvian  cor- 
poration which  operates  them  as  a  system.  Many  additional  rail- 
roads are  projected. 

Articles  Now  Needed. — The  prospects  for  the  sale  of  American 
manufactures  and  products  to  Peru  are  very  encouraging.  Among 
those  which  have  heretofore  been  bought  largely  in  Europe  and 
which  should  be  supplied  by  the  United  States  are  the  following : 
cotton,  textiles  and  manufactures,  woolen  manufactures  in  general, 
manufactures  of  linen,  hemp,  jute,  etc.,  wearing  apparel  and  notions, 
furniture,  stone,  earth,  glass  and  chinaware,  paints,  dyes,  varnishes, 
drugs,  chemicals,  etc.,  stationery,  paper  and  cardboard,  musical 
instruments,  arms,  ammunitions  and  explosives,  dry  goods,  tinned 
goods,  beer,  cement,  hardware  and  implements,  leather,  barbed  wire, 
perfumery  and  toilet  articles,  jewelry. 

Foreign  Commerce  in  Values 

Imports  Exports  Total 

1911 $26,429,875  $36,041,896  $62,471,771 

1912 24,982,047  45,871,503  70,853,550 

1913 29,591,451  44,409,610  74,001,061 

Distribution  of  Foreign  Trade  (four  principal  commercial  countries) 

Imports  Exports 

1913 

United  Kingdom $6,648,368  $15,734,561 

United  States 5,763,425  17,495,276 

Germany 4,521,729  3,205,496 

France 1,547,575  2,730,698 

1913 

United  Kingdom $7,769,225  $16,539,110 

United  States 8,530,525  14,741,639 

Germany 5,132,039  2,906,884 

France 1,363,191  l,5i>6,495 


THE  REPUBLIC  OF  SALVADOR 

Langitage. — Spanish. 

Currency. — The  value  of  the  Salvadorian  silver  peso  on  January 
1,  1912,  was  given  by  the  United  States  Treasury  Department  as 
$0.40.  The  actual  currency  of  the  country  is  inconvertible  paper, 
which  fluctuates  in  value.  Peso=100  centavos;  real=12i/^  centavos; 
medio  real=Gi4  centavos. 

Weights  and  Measures. — The  metric  is  the  legal  system.  Among 
the  old  Spanish  weights  and  measures  still  in  local  use  are  the 
vara:=33  inches  and  the  arroba=r25.36  pounds. 

Postage. — Postal  Union  rates.    Parcel  post. 


456 


APPENDIX 


Area  Square  Miles 


Popiilation 


Population  Per  Square  Mile 


7,225 


166.09 


Year 


1,200,000 
Foreign  Commerce 
Total  Imports  Imports  from  United  States  Total  Exports    Exports  to  United  States 


1913 


Dollars 
6,167,000 

Imports 


Dollars 
2,490,000 


Per  Cent. 
40.4 


Dollars 
7,666,000 


Dollars 
1,310,000 


Per  Cent. 
17.1 


Exports 


Per  Capita 
Revenue      Expenditure 


Debt 


Interest 


Dollars 
5.10 


Dollars 
6.34 


Dollars 
4.42 


Dollars 
5.21 


Dollars 
8.95 


Dollars 
1.45 


Postal  Business 
Foreign  Money  Orders  Sent 


Length  of  Railways 


Number 
627 

Telegraphs 


Value 
$3,630 

Railroads 


Telegraphs 


Date 


Miles        Date 


Miles 
of 

Line 


Miles 

of 
Wire 


Per  10,000 
Inhabit- 
ants 


Per  1,000 
Square 
MUes 


Length 
of  Line 
per  10,000 
Inhabit- 
ants 


Length 
of  Wire 
per  10,000 
Inhabit- 
ants 


1913 


198 


1912 


2,841 


1.6 


Funded 


Debt 
Unfunded,  Including 
Floating  Non-interest- 
bearing,  Etc. 


24.2 


Total 
inU.  S. 
Currency 


23.5 


Rates     Interest  and 
of       Other  Annual 
Interest       Charges 


Currency  Amount  Currency  Amount  Dollars       Per  Cent.       Dollars 

£  SterUng 1,332,000     Pesos,  gold. . .       2,621,000      10,829,000        2-6  1,749,000 

Pesos,  silver.  .  .       3,786,000     Pesos,  silver. .  827,000 


Location,  Area,  and  Physical  Characteristics. — The  republic  of  El 
Salvador  is  the  smallest  of  the  Latin  American  republics.  It  is 
bordered  on  the  north,  east,  and  south  by  Guatemala  and  Honduras, 
and  on  the  west  by  the  Pacific  Ocean,  The  area  of  the  republic  is 
7,225  square  miles.  The  country  is  considerably  broken  by  two 
mountain  chains  which  cross  it  for  almost  its  entirety.  There  are 
several  important  spurs  with  high  altitudes.  As  a  result  of  this 
configuration  there  are  numerous  valleys,  extremely  fertile  and  with 
a  wide  range  of  climate. 

Population. — The  population  of  Salvador  is  1,200,000,  of  which 
the  great  bulk  are  Indians.  The  better  classes  are  Eurojieans  or  the 
descendants  of  Europeans  and  natives  who  intermarried. 

Purchasing  Power. — The  natives  of  Salvador  are  very  thrifty  and 
industrious  and  their  wants  are  increasing.  The  purchasing  power 
of  the  better  classes,  because  of  the  considerable  wealth  of  the  re- 
public, is  large  and  there  is  a  market  for  practically  all  products. 


APPENDIX  457 

Many  of  the  industries   require  machinery,  tools,   etc.,  in  the  sale 
of  which  American  manufacturers  have  excellent  opportunities. 

Resources. — The  chief  source  of  wealth  of  Salvador  is  coffee  which 
has  an  enviable  reputation  abroad.  The  next  items  in  importance  are 
gold  and  silver,  while  sugar,  indigo,  balsam,  hides,  skins,  and 
tobacco  are  of  considerable  importance.  The  balsam  which  is  known 
in  the  trade  as  Peruvian  balsam  is  indigenous  to  Salvador. 

Mining. — Mining  is  carried  on  to  a  considerable  extent,  both  silver 
and  gold  being  exported  largely;  the  mines  are  found  in  the  eastern 
and  western  parts  of  the  republic. 

Indibstries. — The  industries  of  the  republic  are  small,  with  the 
exception  of  the  sugar  mills.  The  usual  products  peculiar  to  these 
countries  are  manufactured,  including  candles,  cigarettes,  confec- 
tionery, dairy  products,  cigars,  saddlery,  rope,  etc.  There  are  a  num- 
ber of  distilleries,  ice  factories,  breweries,  shoe  and  furniture  fac- 
tories.   Manufacturing  is  not  on  an  extensive  scale. 

Principal  Cities. — The  principal  cities  of  Salvador  are :  the  capital, 
San  Salvador,  Sonsonate,  Santa  Ana,  Cojutepeque,  Chalatenango. 

Best  Method  of  Canvassing  the  Bepuhlic. — Travelers  who  visit 
Salvador  enter  the  republic  by  the  ports  of  La  Union,  El  Triunfo,  La 
Concordia,  La  Libertad,  and  Acajutla.  In  some  instances  travelers 
ride  overland  on  horse  or  muleback,  shipping  their  samples  by  cart, 
but  the  port  most  frequently  used  is  Acajutla  which  is  connected 
with  the  capital  by  a  railroad.  Travelers  generally  go  direct  to  San 
Salvador,  which  is  the  chief  place  for  business.  If  local  agencies 
for  the  republic  are  needed,  they  should  be  established  in  San 
Salvador.  For  certain  products  some  of  the  other  cities,  such  as 
Santa  Ana  and  Sonsonate,  offer  excellent  fields,  and  both  can  be 
reached  by  railroad.  There  are  in  both  these  places  merchants 
who  can  afford  to  import  direct.  In  the  case  of  certain  large  in- 
dividual buyers  it  will  prove  advantageous  for  commercial  repre- 
sentatives to  visit  the  cities  of  San  Miguel,  Chalatenango,  and 
Cojutepeque. 

Railways  and  Transportation. — The  principal  railway  of  Salvador 
connects  the  port  of  Acajutlo  with  the  capital,  San  Salvador.  There 
are  branch  lines  to  two  other  places,  particularly  to  Santa  Ana.  The 
new  system,  when  completed,  will  place  Salvador  in  direct  com- 
munication with  the  Atlantic  ports  by  way  of  the  Guatemala  rail- 
ways. 

Effect  of  the  \Yar. — As  the  chief  reliance  of  Salvador  has  been 
on  the  coffee  crop,  the  purchasing  power  will  be  considerably  reduced 
by  reason  of  the  European  War.  A  large  portion  of  the  production 
has  gone  to  France,  Germany,  and  Austria,  and  it  is  essential  that 


458  APPENDIX 

other  markets  be  found  to  take  the  place  of  those  mentioned.  The 
republic  is  also  greatly  in  need  of  additional  credit  facilities^,  which, 
if  furnished  by  the  United  States,  would  result  in  a  material  in- 
crease in  business  with  this  country. 

Articles  Now  Needed. — While  a  considerable  portion  of  the  im- 
ports of  Salvador  have  been  from  the  United  States,  opportunities 
exist  for  American  manufacturers  in  replacing  the  importations 
which  have  heretofore  been  made  from  Germany,  Austria,  Belgium, 
etc.  The  articles  for  which  the  best  opportunity  exists  are  as 
follows :  light  hardware,  drugs  and  medicines,  haberdashery,  beer, 
paper,  stationery,  leather,  fertilizers,  fancy  goods,  safety  matches, 
cartage,  tobacco,  cotton  cloth  and  manufactures,  soap  and  candle 
grease,  glassware,  earthenware  (including  table  utensils),  stone  and 
chinaware,  agricultural  machinery,  fence  wire,  mineral  waters,  lime 
and  cement,  cheap  jewelry,  furniture. 

Foreign  Commerce  of  Salvador  in  Values 

Imports  Exports  Total 

1911 $5,113,518  $^438^561         $14,552,079 

1912 6,774,859  9,942,184  16,717,043 

1913 6,173,545  9,938,724  16,102,269 

Distribution  of  Foreign  Trade  (Jour  principal  commercial  countries) 

1912 

Imports  Exports 

United  States $2,627,700  $2,955,794 

United  Kmgdom 1,904,546  445,456 

Germany 664,674  2,294,500 

France 397,352  1,510,492 

1913 

United  States $2,491,146  $2,823,851 

United  Kingdom 1,603,846  705,607 

Germany 713,855  1,699,694 

France 418,111  2,030,346 


THE  REPUBLIC  OF  URUGUAY 

Language. — Spanish. 

Currency. — Peso=il00  centesimos=: $1,034.  In  converting  Ameri- 
can money  to  Uruguayan  the  importers  usually  figure  the  value  of 
the  dollar  as  9S  centesimos.  There  is  no  coinage  of  gold  and  foreign 
coins  circulate  at  their  value, 


APPENDIX 


459 


^V eights  and  Measures. — The  use  of  the  metric  system  is  obligatory. 
Postage. — Postal    Union    rates.      Parcel    post    arrangement    with 
United  States;  parcels  cannot  be  registered. 


Area  Square  Miles 


Population 


Population  Per  Square  Mile 


1,226,000 


16.99 


Year 


72,172 

Foreign  Commerce 
Total  Imports  Imports  from  United  States  Total  Exports    Exports  to  United  States 


1913 


Dollars 
50,666,000 


Dollars 
6,300,000 


Per  Cent. 
12.4 

Per  Capita 


Dollars 
65,142,000 


Dollars 
2,972,000 


Per  Cent. 
4.6 


Imports 

Exports          Revenue 

Expenditure 

Debt 

Interest 

Dollars 
41.33 

Length  of  Railways 

Dollars             Dollars 
53.14               30.80 

Telegraphs 

Dollars 
30.87 

Railroads 

Dollars 
114.95 

Dollars 
15.48 

Telegraphs 

Length 

Length 

Miles       MUes 

Per  10.000 

Per  1,000 

of  Line 

of  Wire 

Date         Miles       Date           of             of 

Inhabit- 

Square       per  10,000 

per  10,000 

Line         Wire 

ants 

Miles 

Inhabit- 
ants 

Inhabit- 
ants 

1913          1,639        1912         5,344 

13.4 

22.7 

43.6 

Revenue  and  Expenditure 

Year                    Revenue 

Expenditure 

Dollars 

Dollars 

1913-14               37,758,000 

37,842,000 

Debt 

Unfunded, 

Including 

Total 

Rates 

Interest  and 

Funded                          Floating  Non-interest- 

in  U.  S. 

of       ( 

Dther  Annual 

bearing 

,  Etc. 

Currency 

Interest 

Charges 

Currency            Amount           Currency 

Amount 

Dollars 

Per  Cent. 

Dollars 

Pesos 136.299.000     

140.933.000 

3V«-5 

18.984.000 

Location,  Area,  Physical  Characteristics. — The  republic  of  Uru- 
guay is  the  smallest  of  the  republics  of  South  America.  It  is 
bounded  on  the  northeast  by  Brazil,  on  the  south  and  east  by  the 
Atlantic  Ocean,  on  the  west  by  the  Argentine  Republic  from  which 
it  is  separated  by  the  Uruguay  River.  The  country  consists  chiefly 
of  plains,  but  there  are  some  insignificant  mountain  ranges,  and  a 
very  extensive  system  of  waterways,  many  of  which  are  navigable. 
The  climate  is  in  general  very  mild,  being  subtropical.  The  mean 
annual  temperature  of  the  principal  city,  Montevideo,  is  56  degrees 
Fahrenheit  in  the  cool  season  and  64  degrees  Fahrenheit  in  the 
warm  season. 

Population. — The  population  of  Uruguay  is  1,300,000,  or  IS  per 
square  mile.    The  largest  percentage  of  the  people  are  Mestizos.     The 


460  APPENDIX 

better  classes  are  made  up  of  the  descendants  of  the  Spaniards  with 
a  mixture  of  natives.  The  representatives  of  European  nations  are 
found  in  the  principal  cities,  particularly  in  Montevideo. 

Purchasing  Power. — The  purchasing-  power  of  Uruguay  is  rapidly 
increasing:  as  a  result  of  the 'development  of  the  resources  of  the 
country,  especially  of  agricultural  and  animal  industries.  With  the 
growing  wealth  the  per  capita  buying  power  is  increasing  and 
American  manufacturers  not  only  can  furnish  supplies  for  the  prin- 
cipal industries,  but  can  likewise  supply  the  wants  of  the  wealthier 
classes  as  well  as  those  of  the  poorer  people  whose  needs  in  staples 
are  great. 

Resources. — The  chief  resources  of  Uruguay  are  the  raising  of 
cattle  and  agriculture,  including  wheat  and  other  grains.  The  live 
stock  industry  is  especially  important  and  great  amounts  of  meat 
are  exported.  Sheep  raising  is  very  important  while  much  timber 
is  also  being  produced. 

Mining. — Although  the  mineral  resources  of  Urugiiay  have  not 
been  exploited,  they  are  important,  as  numerous  deposits  of  metals 
have  been  uncovered.     The  laws  are  favorable  to  their  development. 

Industnes. — Manufacturing  in  Uruguay  is  steadily  becoming  more 
important.  Among  the  largest  factories  are  those  for  boots  and  shoes, 
the  manufacture  of  furniture,  brick,  tile,  cement,  glass,  and  bottle 
factories.  Other  establishments  are  devoted  to  the  production  of 
wool,  cotton,  and  linen  cloth.  There  are  also  flour  mills  and  packing 
plants. 

Principal  Cities. — The  principal  cities  of  Uruguay  are  Montevideo, 
population,  325,000,  which  is  125  miles  east  of  Buenos  Aires;  Salto, 
population  20,000,  394  miles  east  of  Montevideo;  Paysandu,  popula- 
tion 28,000,  328  miles  from  Montevideo;  Mercedes,  population  1G,000, 
186  miles  from  Montevideo;  Minas,  population  14,000,  78  miles  from 
Montevideo;  Fray  Bentos,  population  7,500,  245  miles  from  Mon- 
tevideo. 

Best  Method  of  Canvassing  the  Republic. — Travelers  visiting  Uru- 
guay naturally  enter  from  Montevideo.  This  city  dominates  the  com- 
merce of  the  republic  and  many  manufacturers  find  it  advisable  to 
place  their  representations  for  the  entire  country  in  this  city,  as 
the  export  and  commission  houses  there  are  accustomed  to  send 
commercial  travelers  from  Montevideo  to  the  interior  or  have  corre- 
spondents in  the  other  commercial  places.  A  city  of  growing  im- 
portance is  Paysandu,  which  is  located  about  300  miles  by  rail 
from  Montevideo  in  the  center  of  an  important  cattle  section,  meat 
packing  and  preserving  being  the  chief  industries.  Many  com- 
mercial  travelers   also   find   it   advantageous   to   visit   Fray   Bentos 


APPENDIX  461 

which  is  245  miles  from  Montevideo  and  owes  its  importance  to  the 
works  of  the  Liebig  Extract  of  Meat  Company.  The  direct  imports 
of  Fray  Bentos  are  growing  and  an  important  district  surrounding- 
it  can  be  canvassed  from  this  place.  Salto  is  the  chief  city  of 
northern  Uruguay  and  must  be  taken  into  consideration  if  local 
agencies  are  essential. 

Railroads  and  Transportation. — Uruguay  is  fortunate  in  its  river 
transportation.  The  extensive  systems  of  waterways  make  it  easy 
to  reach  many  places.  There  are  also  about  1,600  miles  of  rail- 
ways, over  1,000  of  which  are  standard  gauge. 

Articles  N^ow  Needed. — American  manufacturers  who  are  inter- 
ested in  extending  their  business  to  Latin  America  will  find  Uruguay 
a  promising  field.  As  the  exports  have  been  largely  from  Europe, 
the  articles  which  have  heretofore  been  purchased  by  the  countries 
now  at  war  should  be  replaced  by  those  of  American  manufacture. 
Among  the  principal  articles  are  the  following:  beer,  cement,  fence 
wire,  cutlery,  tools,  implements,  paper,  cotton  goods,  stationery, 
leather,  manufactures  of  linen,  stone  and  earthenware,  rice,  tinned 
goods,  drugs  and  chemicals,  ties,  perfumery  and  toilet  articles,  glass 
and  glassware,  fancy  articles,  electric  material,  agricultural  imple- 
ments, corrugated  iron  roofing,  iron  piping,  motor  vehicles,  construc- 
tion material,  portable  gas  and  gasoline  stoves,  furniture. 

Foreign  Commerce  in  Values 

Imports  Exports  Total 

1912 $51,355,200  $53,040,000  $104,395,200 

1913 50,666,300  65,142,000  115,808,000 

1914 38,500,860  64,201.041  92,701,901 

Distribution  of  Foreign  Trade  (/our  priiicipal  commercial  countries) 

Imports  Exports 

191.'. 

United  KinKdom $13,800,000  56,545,892 

Germany 8,700,000  7,905,SS2 

United  States 6,200,000  2,670,779 

France 4,300,000  8,801,137 

1913 

United  Kingdom $13,600,000  $9,000,000 

Germany 8,000,000  10,000,000 

United  States 6,300,000  2,972,222 

France 4,100,000  12,000,000 

(The  figures  above,  except  for  exports  to  the  United  States,  are  all  estLmates.) 


THE  REPUBLIC  OF  VENEZUELA 

Language. — Spanish. 

Currency. — Bolivar — 100  ccntimos=r:$0.193. 

Weights  and  Measures. — The  metric  is  the  legal  system.     Span- 


462 


APPENDIX 


ish  weights  and  measures  still  used  locally  are  vara=33.38  inches, 
and  arrobarr:25.402  pounds. 

Postage. — Postal  Union  rates.  Parcel  post  arrangements  with 
United  States. 

Area. — 393,976  square  miles. 

Population.— 2,nZQ,m(). 

Capital. — Caracas;  population  73,000. 


Area  Square  Miles 


Population 


Population  Per  Square  Mile 


393,976 


7.00 


Year 


2,756,000 
Foreign  Commerce 
Total  Imports  Imports  from  United  States  Total  Exports     Exports  to  United  States 


1914 


Dollars 
17,005,000 


Dollars 
6,158,000 


Per  Cent. 
36.2 

Per  Capita 


Dollars 
26,324,000 


Dollars 
10,540,000 


Per  Cent. 
40.0 


Imports 

Exports           Revenue 

Expenditure 

Debt 

Interest 

Dollars 
6.17 

Length  of  Railways 

Dollars             Dollars 
9.21                  3.66 

Telegraphs 

Dollars 
3.66 

Railroads 

Dollars 
12.72 

DoUara 

.42 

Telegraphs 

Date 


Miles        Date 


Length 

Length 

Miles 

Miles 

Per  10,000 

Per  1,000 

of  Line 

of  Wire 

of 

of 

Inhabit- 

Square 

per  10,000 

per  10,000 

Line 

Wire 

ants 

Miles 

Inhabit- 
ants 

Inhabit- 
ants 

1913 


634 


1912         4,902        4,902 


2.3 


1.6 


17.8 


17.8 


Year 


Revenue  and  Expenditure 

Revenue  Expenditure 


Funded 


Dollars 

Dollars 

913-14                10,080,000 

10,080,000 

Debt 

Unfunded,  Including 

Total 

Rates     Interest  and 

Floating  Non-interest- 

in  U.  S. 

of       Other  Annual 

bearing,  Etc. 

Currency 

Interest       Charges 

Currency  Amount  Currency  Amount         Dollars       Per  Cent.       Dollars 

Bolivares 179,757,000     Bohvares....        1,855,000      35,051,000  3  1,161,000 

Location. — Venezuela  is  located  in  the  northernmost  part  of  South 
America,  being  bounded  on  the  north  by  the  Caribbean  Sea,  on  the 
east  by  British  Guiana  and  Brazil,  on  the  west  by  Colombia. 

Area  and  Physical  Characteristics. — Venezuela  has  an  area  of 
394,000  square  miles.  It  is  divided  into  three  geographical  zones: 
(1)  great  plains  and  river  valleys  called  llanos;  (2)  the  mountainous 
region  of  the  north;  (3)  the  plateaus  or  tablelands  of  the  south. 
Tlie  mountainous  region  is  marked  by  three  distinct  mountain 
ranges  with  numerous  high  peaks. 

Climate, — The  climate  of  Venezuela  varies  materially.     The  re- 


APPENDIX  463 

public  lies  wholly  in  the  tropics ;  consequently  the  coast  and  river 
valleys  have  a  tropical  climate.  In  the  valleys  and  mountainous 
districts  the  climate  is  temperate.  In  the  lowlands  along-  the  coast 
the  mean  annual  temperature  varies  from  78  to  90  degrees  Fahrenheit. 
The  uplands  between  two  and  seven  thousand  feet  have  temperatures 
ranging  from  64  to  77  degrees.  Places  located  higher  than  7,000 
feet  are  cold,  the  temperature  ranging  from  35  to  37  degrees. 

Population. — The  population  of  Venezuela  is  about  2,756,000.  Of 
this  number  about  330,000  are  Indians.  The  balance  are  of  mixed 
blood,  Spanish,  Negro,  and  Indian  intermingled,  but  the  pure  whites 
and  Negroes  are  comparatively  few.  In  all  the  important  centers 
there  are  European  residents. 

Purchasing  Power  of  the  Different  Classes. — As  in  the  case  of  the 
other  republics,  the  purchasing  power  of  the  people  varies  materially. 
The  well-to-do  class  is  not  so  numerous  as  the  peasant  group,  and 
the  wants  of  the  latter  are  chiefly  for  the  staples,  including  cotton 
goods,  etc.  The  wealth  of  the  republic  is  rapidly  growing  and  the 
possibilities  for  the  sale  of  luxuries  and  the  articles  in  common  use 
by  the  well-to-do  in  the  United  States  are  increasing.  Many  kinds 
of  merchandise  which  have  not  hitherto  been  sold  in  "Venezuela  may 
be  introduced,  provided  the  right  effort  is  made. 

Resources. — The  chief  resources  of  Venezuela  are  agricultural, 
coffee  and  cacao  being  particularly  important.  Other  important 
contributions  to  the  foreign  trade  are  balata,  rubber,  tonka  beans, 
sugar,  etc.  The  production  of  coffee  of  a  good  quality,  and  cacao,  is 
rapidly  increasing. 

Other  Resources. — ^Within  recent  years  the  raising  of  cattle  has 
assumed  large  proportions,  and  hides  and  goatskins  are  important 
items  in  export.  Sole  leather,  refrigerated  beef,  and  young  cattle 
are  also  shipped. 

Mining. — The  republic  has  very  rich  deposits  of  minerals  but 
thus  far  they  have  not  been  exploited,  although  some  gold  and 
copper  are  being  produced.  The  minerals  which  are  known  to  exist 
are  silver,  copper,  sulphur,  iron,  tin,  salt,  coal,  lead,  pecroleum,  etc. 
The  chief  mineral  exported  thus  far  is  gold. 

Manufacturing  Industries. — The  manufacturing  industries  of 
Venezuela  are  comparatively  unimportant.  Those  which  exist  are 
cotton  mills,  glass  and  cement  factories,  breweries,  paper  factories, 
and  factories  for  production  of  items  required  for  local  consump- 
tion. The  prospects  for  the  development  of  the  manufacturing 
industries  are  becoming  brighter  with  the  increasing  wealth  of  the 
country. 

Principal    Cities. — The    principal    cities    of    Venezuela    are:    La 


464  APPENDIX 

Guayra,  population  10,000;  Maracaibo,  45,000;  Valencia,  49,000;  Cara- 
cas, 90,000;  Barquisimeto,  20,000;  Barcelona,  14,000;  Ciudad  Bolivar, 
14,000;  Core,  10,000;  Cumana,  12,000;  Campano,  11,500;  San  Cris- 
tobal,  28,600. 

Best  Method  of  Canvassing  the  Repuhlic. — Venezuela  has  excellent 
connections  with  the  United  States  and  Europe.  The  chief  port 
and  trade  center  is  La  Guayra,  from  which  the  capital,  Caracas, 
which  travelers  generally  visit  first,  may  be  quickly  reached,  being 
located  at  a  distance  of  25  miles.  Certain  houses  in  this  place  can- 
vass the  entire  republic,  but  it  may  be  found  advantageous  to 
establish  agencies  in  other  portions  of  the  republic,  notably  Cumana 
in  the  state  of  Bermudas;  Ciudad  Bolivar,  the  capital  of  the  state 
of  Bolivar,  and  the  center  of  an  important  trade  district;  also  Mara- 
caibo, the  principal  city  of  the  state  of  Zulia  and  the  only  port  in 
western  Venezuela  and  eastern  Colombia,  an  especially  important 
city;  Porto  Cabello,  situated  in  the  state  of  Carabobo  and  the  center 
of  a  very  important  trading  district  with  important  industries,  in- 
cluding manufactures  of  shoes,  candles,  and  soap. 

Transportation. — The  facilities  of  Venezuela  in  the  matter  of 
railways  are  becoming  increasingly  important,  the  number  of  miles 
operated  now  being  about  600.  Most  of  the  lines  are  independent 
and  some  of  the  districts  are  extremely  well  served.  The  rivers  of 
Venezuela  afford  excellent  means  of  communication  and  transporta- 
tion, the  Orinoco  with  its  tributaries  being  extremely  important.  Be- 
sides these,  there  are  other  navigable  rivers  of  importance.  Com- 
munication between  the  coast  cities  is  maintained  by  a  coastal  steam- 
ship service  which  is  adequate  for  the  needs  of  the  country. 

Articles  Needed. — Venezuela  offers  excellent  opportunities  for  the 
sale  of  manufactures  which  in  the  past  have  been  imported  largely 
from  Europe.  The  prospects  for  the  sale  of  electrical  supplies,  ma- 
chinery, etc.,  are  very  bright,  and  such  articles  as  typewriters,  cash 
registers,  musical  instruments,  drugs,  chemicals,  etc.,  can  be  sold  very 
largely.  Cotton  goods  are  the  chief  items  of  importance,  while 
flour,  lard,  oil,  butter,  agricultural  implements,  and  drugs  are  some 
of  the  other  chief  imports.  The  increasing  wealth  of  the  country 
will  make  possible  the  sale  of  many  articles  which  have  heretofore 
not  been  imported. 

Foreign  Commerce  in  Valthes 

Imports  Exports  Total 

1912 $20,508,939   $25,260,908   $45,829,847 

1913 18,030,103    29,483,789    47,513,893 

1913-1914 17,005,303    26,323,824    43,329,127 


APPENDIX  465 

Distribution  of  Foreign  Trade  {four  principal  commercial  countries) 

1913 

Imports  Exports 

United  States $6,944,136  $8,475,251 

United  Kingdom 4,296,294  2,199,053 

Germany 2,589,986  5,563,768 

France 1,093,655  9,998,043 

1913-1914 

United  States $6,158,122  $8,611,924 

United  Kingdom 4,260,390  1,862,850 

Germany 2,407,672  4,162,088 

France 1,110,960  8,430,421 


AIDS  TO  STUDY  OF  EXPOET  PROBLEMS 

Pelow  is  given  a  list  of  books  which  will  he  found  valuable  in 
studying  Latin  American  trade  conditions  or  when  considering  the 
prospects  for  business  with  the  southern,  republics.  A  library 
of  the  necessary  volumes  will  require  only  a  small  outlay  and  may 
be  the  means  of  avoiding  costly  errors  besides  loss  of  time  and  mis- 
directed efforts.  The  expenditure  need  not  exceed  fifty  or  sixty 
dollars,  an  insignificant  sum  in  comparison  to  the  importance  of 
proper  attention.  In  addition  to  the  books  mentioned  see  the  lists 
of  miscellaneous  governmental  pamphlets  described  on  page  490. 
Books  relating  to  export  trade,  business,  and  technical  subjects  are 
obtainable  from  the  International  Book  Co.,  1328  Broadway,  and  the 
Technical  Press  Assn.,  Aeolian  Hall,  New  York. 

Bullinger's  Monitor  Guide.  E.  W.  BuUinger,  438  Broadway,  New 
York.     Published  yearly.     $7.50. 

Customs  Tariffs  of  the  World.  Kelly  Publishing  Co.,  New  York. 
$2.50. 

Exporters'  Encyclopedia.  The  Exporters'  Encyclopedia  Co.,  New 
York,  in  connection  with  the  Exporter's  Review.    $7.50. 

Export  Trade  Directory.  American  Exporter,  17  Battery  Place, 
New  York.      $3.00. 

Aughinbaugh,  W.  E.  Selling  Latin  America.  Small  Maynard  & 
Co.,  New  York.     $2.00. 

Francis  M.  Halsey.  The  Railways  of  South  and  Central  America. 
Francis  Emory  Fitch,  Inc.,  47  Broadway,  New  York.     $1.50. 

Hooper,  Frederick,  and  Graham,  Jas.  Modern  Commercial  Prac- 
tice.    Macmillan,  London.     $1.00. 


466  APPENDIX 

Hough,  B.  Olney.  Elementary  Lessons  in  Exporting.  Jolmson 
Export  Pub.  Co.,  New  York.     $3.00. 

.     Ocean   Traffic  and   Trade.     LaSalle   Extension   University, 

Chicago,  111.  An  excellent  work  dealing  with  ocean  shipping  in  all 
its  phases.     $3.00. 

.    Practical  Exporting.    American  Exporter,  New  York.   $4.00. 

Kirkaldy,  A.  W.,  and  Evans,  A.  D.  History  and  Economics  of 
Transportation  (1915).    Isaac  Pitman  &  Sons,  New  York.    $3.00. 

Peid,  William  A.  The  Young  Man's  Chances  in  South  and  Central 
America.  The  Southern  Commercial  Congress  (1914).  173 
pages.     $1.00. 

Smith,  Jos.  KusseU.  The  Ocean  Carrier.  G.  P.  Putnam's  Sons, 
New  York.    $1.50. 

FOREIGN  EXCHANGE  AND  BANKING 

Brooks,  H.  K.     Foreign  Exchange.     Delbridge,  New  York.    $5.00. 

Foreign  Exchange  Figuring  Book.  Foreign  Exchange  Publishing 
Co.,  New  York.     $5.00. 

Foreign  Exchange  Text  Book.  Foreign  Exchange  Publishing  Co., 
New  York.     $5.00. 

Clara,  G.  A.B.C.  of  Foreign  Exchange.  Macmillan,  New 
York.     $1.25. 

Cosby,  T.  Latin  American  Monetary  and  Exchange  Conditions. 
National  City  Bank,  New  York. 

Escher,  Franklin.  Elements  of  Foreign  Exchange.  Bankers'  Pub- 
lishing Co.,  New  York.  A  valuable  work  by  a  well  known  authority 
of  financial  topics.  Of  particular  interest  to  the  student  as  the 
subject  is  treated  in  an  interesting  and  simple  way.     $1.00 

Goschen,  G.  J.  Theory  of  Foreign  Exchanges.  Chas.  Scribner's 
Sons,  New  York.     $2.40. 

Gonzalez,  V.  Modern  Foreign  Exchange  (including  Monetary 
Systems,  Intrinsic  Equivalents  and  Commercial  Eates  of  Exchange). 
National  Association  of  Manufacturers.  C.  S.  Hammond  Co.,  30 
Church  St.,  New  York.     $1.00. 

Spalding,  William  F.  Foreign  Exchange  and  Foreign  Bills  in 
Theory  and  in  Practice.     Isaac  Pitman  &  Sons,  New  York.     $2.00. 

CABLE  CODES 

A.B.C.  Code.  American  Code  Company,  New  York.  Published 
in  English  or  Spanish  language.     $10.00.     Portuguese.     $15.00. 

Lieber's  Code.  Lieber  Code  Co.,  New  York.  Published  in  Eng- 
lish, Spanish,  French,  or  German,    Each,  $10.00. 


APPENDIX  467 

Marconi's  Wireless  Telegraph  Code.  Marconi  Wireless  Telegraph 
Co.,  25  Broad  St.,  New  York.    $5.00. 

Seger  &  Guernsey.  Manufacturers'  Export  Code.  American  Code 
Co.,  New  York.     $5.00. 

Universal  Code.    American  Code  Company,  New  York.    $7.50. 

Veslot  Code.  American  Code  Company,  New  York.  Transmits 
and  automatically  translates  messages  into  Spanish,  English,  French, 
Italian,  or  German.     Two  volumes  to  each  language.    $25.00. 

Western  Union  Code.  American  Code  Company,  New  York.  Pub- 
lished in  English  only.     $20.00. 

Publishers  of  Miscellaneous  Codes 
Before  adopting  a  code,  the  advantages  of  the  numerous   codes 
published  by  the  following  should  be  considered. 

Business  Code  Company,  929  West  End  Avenue,  New  York. 
Metropolitan  Code  Company,  815  Stewart  Building,  Chicago,  111. 
Hartfield  Telegraphic  Code  Company,  73  Pearl  Street,  New  York. 
Watkins  Universal  Shipping  Code  Office,  39  Broad  St.,  New  York. 
McGraw-Hill  Book  Company,  231  West  39th  Street,  New  York. 
D.  Van  Nostrand  &  Company,  25  Park  Place,  New  York. 
C.  N.  Caspar  Company,  454  East  Water  Street,  New  York. 

AIDS  TO  CORRESPONDENCE 

The  following  is  a  list  of  books  which  will  be  found  useful  in 
correspondence  with  Latin  America.  Models  of  letters,  suggestions 
for  preparation  of  communications  in  Spanish  and  for  the  general 
conduct  of  correspondence  with  the  southern  republics  are  contained 
in  the  different  books. 

Arteaga  y  Pereira,  F.  Correspondencia  Comercial  Espanol  (Com- 
mercial Correspondence).     Brentano,  New  York.     $1.00. 

Cornett,  W.  N.  Spanish  Commercial  Correspondence.  C.  N. 
Caspar  Co.,  Milwaukee,  Wis.     $0.75.     Also  Portuguese. 

Cortina,  Rafael  Diaz  de  la.  Serie  de  la  Cortina :  Modelos  para 
cartas  en  Espaiiol  y  en  Ingles.  Cortina,  New  York.  $1.00.  Paper 
$0.75. 

Harrison,  Earl  Stanley.  Spanish  Correspondence.  Henry  Holt 
&  Co.,  New  York.     $1.00 

Hossfeld.  Polyglot  Correspondent.  To  compose  letters  in  Eng- 
lish, Spanish,  French,  German;  vocabulary  of  technical  expressions, 
business  words,  engineering  terms,  etc.  John  Lane  Co.,  New  York. 
$1.75. 

Kenyon,  H.  A.  Spanish  Commercial  Correspondence,  G,  Wahr, 
Ana  Arbor,  Michigan.     $0,75. 


468  APPENDIX 

McConnell,  E.  Spanish  Business  Letters.  Isaac  Pitman  &  Sons, 
New  York.     $0.25. 

Macdonald,  C.  R.  Manual  of  Spanish  Commercial  Correspond- 
ence.    Caspar.     $1.40. 

Pittman,  I.  Dictionary  of  Commercial  Correspondence.  In  Eng- 
lish, German,  French,  Spanish  and  Italian.  Isaac  Pitman  &  Sons, 
New  York.     $2.50. 

Foreign  Phrases  in  Daily  Use.  Funk  &  Wagnalls  Co.,  New 
York.     $0.25. 

Spanish  Business  Interviews.  Isaac  Pitman  &  Sons,  New  York. 
$0.50. 

Spanish  Commercial  Phrases.  Isaac  Pitman  &  Sons,  New  York. 
$0.25. 

Thomas,  F.  Handbook  of  Commercial  Spanish.  C.  N.  Caspar  Co., 
Milwaukee,  Wis.    $0.75. 

Yanez,  Juan  Baedo.  Correspondencia  Coraercial.  John  Lane  Co., 
New  York. 

TECHNICAL  DICTIONARIES 

Below  are  listed  some  of  the  principal  technical  dictionaries  useful 
not  only  in  correspondence  but  in  preparation  of  catalogs,  advertising 
matter,  etc. 

Byrne,  0.,  and  Spon,  E.  Dictionary  of  Engineering  with  Tech- 
nical Terms  in  French,  Spanish,  English  and  German.  Spon  & 
Chamberlain,  New  York.    $22.00. 

Chandler,  John  K.  Redman,  John  C.  Government  Printing  Office, 
Washington,  D.  C.  Commercial  Nomenclature.  English,  Spanish 
and  Portuguese.  Two  volumes.  Paper,  $2.00 ;  Cloth,  $2.50.  Spanish, 
English  and  Portuguese.  Paper,  $2.00.  Portuguese,  Spanish  and 
English.  Paper,  $2.50.  Superintendent  of  Documents,  Government 
Printing  Office,  Washington,  D.  C. 

Deinhardt,  Kurtz,  and  Schlomann,  Alfred  (Eds.).  Illustrated 
Technical  Dictionary  in  Six  Languages.  Eleven  volumes:  I.  Ele- 
ments of  Machinery.  $2.00.  11.  Electrical  Engineering.  $7.00. 
III.  Steam  Boilers,  Engines  and  Turbines.  $4.00.  IV.  Internal 
Combustion  Engines.  $2.50.  V.  Railway  Construction  and  Oper- 
ation. $3.50.  VI.  Railway  Rolling  Stock.  $3.00.  VII.  Hoisting 
and  Conveying  Machinery.  $3.00.  VIII.  Re-enforced  Concrete. 
$2.00.  IX.  Machine  Tools.  $3.00.  X.  Motor  Cars,  Motor  Boats 
and  Aeroplanes.  $4.00.  XL  Metallurgy.  $3.00.  McGraw-Hill  Book 
Co.,  New  York. 

Garcia,  A.  J.  R.  V.  Dictionary  of  Engineering  Terms  in  English 
and  Spanish,    Spon  &  Chamberlain,  New  York.    $1.00, 


APPENDIX  469 

Dictionary  of  Railway  Terms.  Spanish-Englisli,  English-Spanish. 
D.  Van  Nostrand  &  Co.,  New  York.    $4.50. 

Graham,  Jas.,  and  Oliver,  George  Q.  Dictionary  of  Railway 
Terms  in  English  and  Spanish  (1913).  IVIacmillan,  New  York  and 
London.  This  dictionary  is  very  valuable  for  general  purposes.  It 
includes  many  expressions,  technical  terms,  etc. 

Foreign  Traders'  Dictionary.  Terms  and  phrases  in  Spanish, 
French,  English,  German.  Commerce  and  Science.  Macmillan,  New 
York.     $1.00. 

Halse,  E.  Dictionary  of  Spanish-American  Mining,  Metallurgical 
and  Allied  Terms.    J.  B.  Lippincott  Co.,  Philadelphia,  Pa.    $3.50. 

Hemlett,  G.  Sea  Terms  and  Phrases.  J.  B.  Lippincott  Co.,  Phila- 
delphia, Pa.    $1.25. 

Huelin  &  Arssu,  C.  Technological  Dictionary.  Spanish,  English, 
French,  German.  Four  volumes  each,  in  four  languages.  Spon  & 
Chamberlain,  New  York.    Each,  $4.00. 

Jackson,  W.  Dictionary  of  English  and  Spanish,  Technical  and 
Commercial  Terms.     Spon  &  Chamberlain,  New  York.     $1.00. 

Lucas,  F.  Spanish-English  Dictionary  of  Mining  Terms.  Spon 
&  Chamberlain,   New  York.     $2.00. 

Macdonald,  G.  R.  Spanish-English,  English-Spanish  Commercial 
Dictionary.     Isaac  Pitman  &  Sons,  New  York.     $2.25. 

Commercial  &  Technical  Terms  in  the  English  and  Spanish  Lan- 
guages.    Whittaker  &  Co.,  New  York  and  London.     $0.50. 

Pocket  Glossary  of  English-Spanish,  Spanish-English  Technical 
Terms.     The  D.  Van  Nostrand  Co.,  New  York.     $1.00. 

Ponce  de  Leon,  N.  Technological  Dictionary.  Munn  &  Co.,  New 
York.  Two  volumes.  English-Spanish,  $8.50.  Spanish-English, 
$7.50. 

Scholl.  Phraseology  Dictionary.  Brentano,  New  York.  Published 
in  separate  volumes  from  English  into  Spanish,  English  into  French, 
and  English  into  German.     $2.40. 

Slater,  J.  A.  Dictionary  of  the  World's  Commercial  Products. 
Spanish,  English,  German,  French.  Isaac  Pitman  &  Sons,  New 
York.     $1.00. 

Toledano,  C.  A.  Pitman's  Commercial  Correspondence  Grammar. 
Isaac  Pitman  &  Sons,  New  York.     $1.00. 

Trautwine  Engineers'  Pocket  Book.  Spanish  edition.  Translated 
by  Alberte  Smith,  C.  E.,  Technical  Bureau,  N.  Y.  Valuable  for 
exporters  of  products  of  technical  nature.  1300  pages,  1400  figures, 
600  tables,  450  diagrams.     $5.00. 

Veitelle,  I.  de.  Mercantile  Dictionary.  Spanish,  French  and  Eng- 
lish.    D.  Appleton  &  Co.,  New  York.     $1.50. 


470  APPENDIX 

DICTIONARIES 

The  principal  dictionaries  in  English-Spanish  and  Spanish-English 
and  Portuguese-English  are  listed  below.  A  good  dictionary  is  in- 
dispensable to  every  student  of  Latin  American  business. 

Almeida.  Dictionary  in  Six  Languages.  French,  German,  English, 
Spanish,  Italian,  Portuguese.     G.  E.  Steckert  Co.,  New  York.     $4.00. 

Barroeh,  George  Frederick.  Pocket  Dictionary  of  English-Spanish 
Language. 

Beale,  W.  English-Spanish,  Spanish-English  Dictionary.  Excel- 
sior Pub.  House,  New  York.     $1.00. 

Brentano's  New  English-Spanish  Dictionary.  Brentano,  New 
York.    $1.50. 

Bustamante,  P.  C.  Spanish-English  Dictionary.  G.  E.  Steckert 
&  Co.,  New  York.     Two  volumes.     $1.75. 

Cuyas,  Arturo  (ed.).  Appleton's  New  Spanish-English  Dictionary. 
D.  Appleton  &  Co.,  New  York.     $3.00. 

Elmes,  A.  Spanish-English,  English-Spanish  Dictionary.  D.  Van 
Nostrand,  New  York.    $1.60. 

Hinds.  Spanish-English,  English-Spanish  Dictionary.  Ilinds- 
Noble-Eldrege,  New  York.    $1.00. 

Lopez  and  Bensley.  English-Spanish,  Spanish-English  Dictionary. 
G.  E.  Steckert  Co.,  New  York.    $5.75. 

MacDonald.  English-Spanish  and  Spanish-English  Commercial 
Dictionary.     Brentano,  New  York.     $2.00. 

Michaelis.  Abridged  English-Portuguese  Dictionary.  G.  E. 
Steckert  &  Co.,  New  York.    $4.50. 

English-Portuguese  Dictionary.  G.  E.  Steckert  &  Co.,  New  York. 
$4.25. 

Neumann,  (Henry)  and  Baretti,  Guiseppe.  Dictionary  of  the 
Spanish-English  language.  J.  B.  Lippincott  Sons,  New  York. 
$1.08. 

Perez,  Jorba  J.  English-Spanish  and  Spanish-English  Dictionary. 
Little  Brown  &  Company,  Boston,  Mass.     $1.25. 

Real  Academia.  Diccionario  de  la  Lengua  Castellana.  G.  E. 
Steckert  Co.,  New  York:    $8.50. 

Velazquez,  Mariano  de  la  Cadena.  A  Dictionary  of  the  Spanish- 
English  Language.  D.  Appleton  &  Co.,  New  York.  $6.00.  With 
index,  $7.00. 

New  Spanish  Dictionary.  D.  Appleton  &  Co.,  New  York. 
$1.00. 

Wessely,  I.  E.  Handy  Dictionary  of  the  English-Spanish  Lan- 
guages.   Brentano,  New  York.    $1.00 


APPENDIX  471 

SPANISH  READERS 

The  student  of  Spanish  and  Portuguese  should  not  only  depend 
upon  grammars,  but  will  find  readers  containing  simple  and  more 
advanced  examples  valuable  in  mastering  these  tongues.  Below  are 
listed  some  that  will  serve  this  purpose : 

Arteaga  y  Pereira,  Fernando.  A  New  Spanish-English  Vocabulary. 
D.  Appleton  &  Co.,  New  York.     $1.00. 

Berlitz,  M.  de.    Espanol  Comercial.     M.  de  Berlitz.    $0.75. 

Bonilla,  R.  H.  Spanish  Daily  Life.  Newson  &  Co.,  New  York. 
$0.90. 

Butler,  F.  Spanish  Traders'  Colloquial  Phrase  Book.  D.  Appleton 
&  Co.,  New  York.     $0.50. 

Connor,  J.  Conversation  Book  in  Spanish  and  English.  Brentano, 
New  York.    $0.G0. 

Cornett,  W.  N.  Spanish-Commercial  Correspondence  and  Tech- 
nicalities.    Caspar.     V5c. 

DeVites,  M.  A.  A  Spanish  Grammar  for  Beginners.  Allyn  & 
Bacon.     $1.25. 

Espinosa  and  Allen,  An  Elementary  Spanish  Grammer.  Ameri- 
can Book  Co.    $1.24. 

Garner,  S.  Essentials  of  Spanish  Grammar.  American  Book  Co., 
New  York.    $1.00. 

Harrison,  E.  S.     Spanish  Commercial  Eeader.     Ginn  &  Co.     90c. 

Hills,  Elijah  Clarence.  Spanish  Tales  for  Beginners.  Henry 
Holt  &  Co.,  New  York.    $1.10. 

Hossfeld.     Spanish  Dialogues.     John  Lane  Co.,  New  York.     $0.45. 

Jaeschke,  Richard.  Conversation  Dictionary.  English-Spanish, 
Spanish-English. 

Knapp,  Wm.  Ireland.  Modern  Spanish  Readings.  Ginn  &  Co., 
Boston,  Mass.     $1.50. 

MacDonald,  George  R.  A  New  Spanish-English,  English-Spanish 
Idiom  and  Phrase  Book.     Caspar  &  Co.,  Milwaukee. 

.     Pitman's    Spanish   Commercial   Reader.      Isaac   Pitman   & 

Sons,  New  York.     $1.00. 

Matzke,  John  Ernst.  First  Spanish  Readings.  D.  C.  Heath  & 
Co.,   Boston,   Mass.     $0.90. 

Monteverde,  R.  de.  Spanish  Idioms  with  English  Equivalents. 
Macmillan,  New  York  and  London.     $0.80. 

Pequeno  Yocabulario.  D.  C.  Heath  &  Co.  1500  strictly  necessary 
Spanish  words.     20c. 

Pinney,  A.  E.  Spanish  and  English  Conversation.  Ginn  &  Co., 
Boston,  Mass.     Two  books.    Each,  $0.60, 


/ 


472  APPENDIX 

Pitman,  I.  Spanish  Tourists'  Vade  Mecum.  Isaac  Pitman  &  Sons, 
New  York.    $0.40. 

Puron,  Juan  Garcia.  El  Lector  Moderro  de  Appleton.  A  graduated 
course  in  Spanish.     30,  40  and  50c. 

Romero,  T.  S.  Spanish — Commercial  and  Professional.  McKay. 
75c. 

Sauer,  Carl  M.,  and  Roehrich,  Wm.  Spanish  Conversation  Gram- 
mar.   Brentano,  New  York.    $1.00.    Key,  $0.50. 

Spanish  Dialogues.  Brentano,  New  York. 

Schaeffer,  Henry.  Hossfeld's  Spanish  Dialogues.  Brentano,  New 
York.     $0.45. 

Simon,  H.  Travellers'  Colloquial  Spanish.  Brentano,  New  York. 
$0.50. 

Thomas,  F.     Hand  Book  of  Commercial  Spanish.     Caspar.     75c. 

Umphrey,  George  Wallace.  Spanish  Prose  Composition.  American 
Book  Co.,  New  York.    $0.75. 

Waxman,  S.  M.  A  Trip  to  South  America.  An  exercise  in  Span- 
ish composition.     D.  C.  Heath  &  Co.     50c. 

Willcox,  Carnelis  de  Witt.  A  Reader  of  Scientific  Technical 
Spanish  for  Colleges.     Sturgis  &  Walton  Co.,  New  York.     $1.75. 

Yanez,  Juan  Baedo.  Spanish  Composition.  Hirschfeld  Bros., 
New  York. 

SPANISH  CONVERSATION 

Below  are  listed  some  of  the  books  containing  dialogs,  etc.,  which 
will  aid  the  students  of  Spanish  and  Portuguese  in  mastering  these 
languages. 

Ahn,  Frederich  J.  A  New  Practical  Method  of  Learning  Spanish. 
D.  Appleton  &  Co.,  New  York.    $1.75. 

Belem,  E.  M.  De.  The  Spanish  Phrase  Book  or  Key  to  Spanish 
Conversation.     D.  Appleton  &  Co.,  New  York.    $0.30. 

Berlitz,  M.  D.  Spanish  With  or  Without  a  Master.  For  Self 
Instruction  or  Schools.    M.  D.  Berlitz  &  Co.,  New  York.     $1.00. 

Cornett,  W.  Spanish  Dialogues  and  Idiomatic  Phrases.  Hoss- 
feld's Pocket  Manuals.    John  Lane  Co.,  New  York. 

Cortina,  Rafael  Diaz  de  la.  The  Cortina  Methods.  Spanish  in 
Twenty  Lessons.    D.  Appleton  &  Co.,  New  York.     $1.50. 

Crockett,  Cary  Ingram.  A  Working  Knowledge  of  Spanish.  George 
Barita  Publishing  Co.,  Menosha,  Wisconsin.     100  pages.     $0.75. 

Giese,  Frederic  Wm.  A  First  Spanish  Book  and  Reader.  D. 
Appleton  &  Co.,  New  York.    $1.20. 

Spanish  Anecdotes  Arranged  for  Translation  and  Conversation.  D. 
C.  Heath  &  Co.,  Boston,  Mass.     $0.60. 


APPENDIX  ■  473 

Hall,  Guillermo.  All  Spanish  Method  to  Learn  Spanish.  World 
Book  Co.,  Yonkers,  K  Y.     $1.00. 

Necker,  Sarah  Gary,  and  Federico,  Mora.  Spanish  Idioms  with 
their  English  Equivalents.     Ginn  &  Co.,  Boston,  Mass.     $1.80. 

PORTUGUESE  BOOKS 

Portuguez  en  Portuguez.  R.  D.  de  la  Cortina  Co.,  New  York. 
$1.00. 

Granest,  E.  J.  New  Method  of  Learning  the  Portuguese  Lan- 
guage.   D.  Appleton  &  Co.,  New  York.    $1.70. 

Hossfeld.  Portuguese  Dialogues.  John  Lane  Company,  New 
York.     $1.45. 

Pitman,  I.  International  Mercantile  Letters.  English-Portuguese. 
Isaac  Pitman  &  Sons,  New  York.     $1.25. 

Dictionaries 

Almeida.  Dictionary  in  Six  Languages.  G.  E.  Steckert  &  Co., 
New  York.    $4.00. 

Elives,  A.  Portuguese-English,  English-Portuguese  Dictionary. 
D.  Van  Nostrand  &  Co.,  New  York.    $2.00. 

Michaelis,  H.  New  Dictionary  of  the  Portuguese-English  Lan- 
guages.    Lemcke  &  Buechner,  New  York.     Two  volumes,  each  $5.00. 

Wessely,  I.  E.  Portuguese-English,  English-Portuguese  Diction- 
ary.    Brentano,  New  York.     $1.00. 

Gi'ammars 

Branner,  J.  C.  Brief  Grammar  of  the  Portuguese  Language,  with 
exercises  and  vocabularies.    Henry  Holt  &  Co.,  New  York.     $1.25. 

Kordien,  G.  C,  and  Krinow,  E.  Portuguese  Conversation  Gram- 
mar.   Brentano,  New  York.    $1.75.    Key,  $0.60. 

ATLASES  AND  GAZETTEERS 

Cassell's  Atlas.     Cassell  &  Co.,  New  York.    $5.00. 

Modern  Atlas  of  the  World.  C.  S.  Hammond  &  Co.,  New  York. 
$3.00. 

Pictorial  Atlas  of  the  World.     Hammond  &  Co.,  New  York.    $5.00. 

Harmsworth  Atlas  "and  Gazetteer,  500  maps  with  diagrams,  Com- 
mercial Statistics  and  Index  of  105,000  names.     $15.00. 

Universal  Atlas  of  the  World.    Rand  McNally  &  Co.,  Chicago.  $6.00. 

Bartholomew,  J.  G.  Atlas  of  the  World's  Commerce.  Chas. 
Scribner's  Sons,  New  York.     $4.50. 


474  APPENDIX 

Handy  Reference  Atlas  of  the  World.  E,  P.  Dutton  &  Co.,  New 
York.    $2.50. 

Twentieth  Century  Citizens'  Atlas  of  the  World.  Chas.  Scribner's 
Sons,  New  York.     $6.00. 

Chambers.  Concise  Gazetteer  of  the  World.  J.  B.  Lippincott 
Co.,  New  York.    $3.00. 

Chistahn,  G.  G.  Longmans'  Gazetteer  of  the  World.  J.  B.  Lippin- 
cott Co.,  New  York.    $6.40. 

Cram,  G.  T.  Atlas  of  the  World.  G.  T.  Cram  &  Co.,  Chicago. 
$1.25. 

Heilprin,  A.,  and  L.  Lippincott's  New  Gazetteer.  J.  B.  Lippincott 
&  Co.,  New  York.     $10.00. 

Hirst,  W.  A.  Guide  to  South  America.  Macmillan  Co.,  New  York. 
The  best  work  of  its  kind  that  has  been  published,  containing  much 
valuable  information  regarding  South  America.     $1.75. 

Maunder,  S.  Treasury  of  Geography.  Longmans,  Green  &  Co., 
New  York.     $1.75. 

Patten,  W.,  and  Homans,  J.  E.  New  Encyclopedic  Atlas  and 
Gazetteer  of  the  World.     P.  F.  Collier's  Sons,  New  York.     $3.75. 

Valuable  Books  on   Geography 

Adams,  C.  C.  Text  Book  of  Commercial  Geography  (1911).  D. 
Appleton  &  Co.,  New  York.     $1.30. 

.     Elementary   Commercial   Geography.     D.   Appleton  &   Co., 

New  York.     $1.00. 

Bartholomew,  J.  G.  An  Atlas  of  Economic  Geography.  Oxford 
University  Press.     (1914).     64  colored  maps.     $1.75. 

Bowman,  Israel.  South  America,  a  Geography  Reader.  Yale  Uni- 
versity, Rand  McNally  &  Co.,  Chicago.     (1915).     354  pages.     75c. 

Brigham,  A.  P.  Commercial  Geography  (1911).  Ginn  &  Co., 
Boston.    $1.30. 

Chisholm,  G.  G.  Handbook  of  Commercial  Geography  (1911). 
Longmans,  Green  &  Co.,  New  York.     $4.80. 

Freeman,  W.  G.,  and  Chandler,  S.  E.  World's  Commercial  Prod- 
ucts.   Ginn  &  Co.,  Boston,  Mass.    $3.50 

Stanford.  Compendium  of  Geography.  J.  B.  Lippincott  &  Co., 
New  York.    $5.50. 

BOOKS  AND  PUBLICATIONS  CONCERNING  LATIN 
AMERICA,  ITS  COMMERCE  AND  OPPORTUNITIES 

Books  Concerning  Latin  America. — The  bibliography  relating  to 
Latin  America  is  already  large  and  steadily  growing.     The  last  five 


I 


APPENDIX  m 

years,  many  valuable  books  relating  to  tlie  Latin  American  republics 
have  been  published,  and  the  publication  of  still  others  is  announced. 
For  the  purpose  of  obtaining  an  idea  of  trade  opportunities  the  manu- 
facturer should  read  the  reports  relating  to  commercial  conditions, 
but  in  order  thoroughly  to  appreciate  and  realize  the  opportunities  for 
business,  these  should  be  supplemented  by  a  reading  of  books  con- 
cerning the  people  of  Latin  America,  their  governments,  customs, 
industries,  products,  manufactures,  etc.  Those  who  intend  to  make 
Latin  American  business  a  life  work  will  find  it  important  to  know 
something  of  the  history  of  the  republics  and  their  literature,  art, 
etc.  Books  relating  to  these  topics  can  be  obtained  without  difficulty. 
The  following  is  a  list  of  the  more  important  ones  which  the  student 
will  find  useful.  It  is  by  no  means  complete  but  will  afford  a 
starting  place  for  wider  reading. 


PUBLICATIONS  EELATING  TO  LATIN  AMERICA 
IN  GENERAL 

In  addition  to  the  numerous  books  which  deal  with  individual  Latin 
American  countries,  there  are  other  volumes  which  are  devoted  to 
Latin  America  as  a  whole,  or  to  groups  of  countries  therein.  Some 
of  the  principal  ones  more  recently  published  are  listed  below: 

Commercial  Traveler  in  South  America.  Experiences  of  a  com- 
mercial traveler  in  South  America,  related  in  a  series  of  letters 
to  the  Editor  of  the  Bulletin  of  the  Pan-American  Union  and  re- 
printed from  the  Bulletin  of  the  Pan-American  Union.  16  pages. 
Illustrated.     Free. 

Latin  American  Trade.  Foreign  Trade  in  1913.  A  general  survey. 
Reprint  from  the  Bulletin  of  the  Pan-American  Union  of  December, 
1914.    Free. 

Panama  to  Patagonia;  the  Isthmian  Canal  and  the  West  Coast 
Countries  of  South  America.     A.  C.  McClurg  &  Co.,  Chicago  (1906). 

Sightseeing  in  South  America.  Fizzell  &  Greenfield,  New  York. 
(1912).     $1.50. 

Adams,  A.  A.  Plateau  People  of  South  America.  E.  P.  Dutton 
&  Co.,  New  York.   (1915).     $1.25. 

Akers,  Charles  Edmund.  A  History  of  South  America,  1854-1904. 
E.  P.  Dutton  &  Co.,  New  York.  (1912).  New  edition  with  an  addi- 
tional chapter  bringing  the  history  to  the  present  day.     $4.00. 

Bingham,  Hiram.  Across  South  America.  An  account  of  a 
journey  from  Buenos  Aires  to  Lima  by  way  of  Potosi  with  notes  on 


476  APPENDIX 

Brazil,  Argentina,  Bolivia,  Chile  and  Peru.  Houghton  Mifflin  &,  Co., 
Boston  and  New  York.  (1911).     $3..50. 

The  Journal  of  an  Expedition  Across  Venezuela  and  Colombia, 
1906-1907.  An  exploration  of  the  route  of  Bolivar's  celebrated  march 
of  1819  and  of  the  battlefields  of  Boyaca  and  Carabobo.  Yale  Pub- 
lishing Association,  New  Haven,  Conn. 

Babson,  Roger  W.  The  Future  of  South  America.  Little  Brown 
&  Co.,  Boston.     (1915).     407  pages.     $2.00. 

Bonsai,  Stephen.  The  American  Mediterranean.  Moffat  Yard 
&  Co.,  New  York.   (1912).     $3.20. 

Boyce,  W.  D.  Hlustrated  South  America.  A  Chicago  publisher's 
travels  and  investigations  in  republics  of  South  America.  Rand, 
McNally  &  Co.,  Chicago.  (1912). 

Brady,  Cyrus  Townsend.  South  American  Fights  and  Fighters, 
and  Other  Tales  of  Adventure.  Doubleday,  Page  &  Co.,  New  York. 
(1910).      $1.50. 

Brown,  C.  S.  Vesey  (ed.  and  compiler).  South  American  Year 
Book.  (1915).  (Incorporating  the  South  American  Railway  Year 
Book).  Louis  Cassier  Co.,  Ltd.,  London.  (1915).  A  valuable  and 
very  useful  work.     $8.50. 

Bryce,  James.  South  America.  Observations  and  impressions. 
Macmillan  Co.,  New  York.  (1912).    $2.70. 

Buckman,  Wm.  Under  the  Southern  Cross  in  South  America. 
(1914). 

Calderon,  F.  Garcia.  Latin  America,  Its  Rise  and  Progress.  With 
a  preface  by  Raymond  Miall.  Charles  Scribner's  Sons,  New  York. 
(1913). 

Clemenceau,  Georges  E.  B.  South  America  Today.  Political  and 
commercial  side  of  Argentina,  Uruguay  and  Brazil  as  a  result  of 
travel  in  1910.    G.  P.  Putnam's  Sons,  New  York.    $2.00. 

Clark,  Francis  E.  The  Continent  of  Opportunity.  The  South 
American  Republics,  their  history,  their  resources,  their  outlook. 
Fleming  H.  Revell  Co.,  New  York.  (1907).  349  pages.  80  plates. 
$1.50. 

Currier,  Charles  Warren.  Lands  of  the  Southern  Cross.  A  Visit 
to  South  America  by  Rev.  Charles  Warren  Currier.  Spanish- 
American  Publication  Society,  Washington,  D.  C.  (1911). 
$1.50. 

Curtis,  William  Eleroy.  Between  the  Andes  and  the  Ocean.  An 
account  of  an  interesting  journey  down  the  west  coast  of  Soiitli 
America  from  the  Isthmus  of  Panama  to  the  Straits  of  Magellan. 
Duffield  &  Co.,  New  York.    (1907).     442  pages. 

Dawson,  Thomas  C.    The  South  American  Republics.    A  history  of 


APPENDIX  477 

political  aspects  of  South  America,  country  by  country.  G.  P. 
Putnam's  Sons,  New  York.     In  two  volumes.     Each,  $1.50. 

Domville-Fife,  Charles  W.  Guatemala  and  the  States  of  Central 
America.  Francis  Griffiths,  London.  James  Pott  &  Co.,  New  York. 
(1913).     $3.00. 

Enock,  Reginald  C.  The  Republics  of  Central  and  South  America. 
Their  resources,  industries,  sociology  and  future.  Charles  Scribner's 
Sons,  New  York.     (1913).     $3.00. 

.  The  Tropics.     Charles  Scribner's  Sons,  New  York.     (1915). 

466  pages.     $4.50. 

Forest,  A.  S.  Tour  Through  South  America.  Pott,  New  York, 
$3.00. 

Hale,  Albert.  Practical  Guide  to  Latin  America,  Including  Mexico, 
Central  America,  the  West  Indies  and  South  America.  Preparation, 
cost,  routes,  sightseeing.  Small,  Maynard  &  Co.,  Boston.  (1909). 
300  pages.     $1.00. 

Halsey,  Frederick  M.  (statistician).  The  Railways  of  South  and 
Central  America.  A  manual  of  the  railways,  with  full  information 
about  control,  earnings,  traffic  finances,  etc.  Francis  E.  Fitch,  New 
York.    $1.25. 

Hirst,  W.  A.  A  Guide  to  South  America.  A  South  American 
Baedeker,  describing  systematically  the  methods  of  travel,  the 
places  to  visit  in  every  country,  expenses,  etc.  Macmillan,  New 
York.     $1.75. 

Hutchinson,  Lincoln.  Trade  Conditions  in  Argentina,  Paraguay 
and  Uruguay.  Special  Agents  Series  No.  8.  Department  of  Com- 
merce, Washington,  D.  C. 

Keane,  A.  H.,  and  Markham,  C.  R.  Central  and  South  America 
(in  Stanford's  Compendium  of  Geography  and  Travel). 

Koebel,  W.  H.  Romance  of  the  River  Plate.  Bradbury  Agnew  & 
Co.,  Ltd.,  London,  1914.     Two  volumes.     $42.50. 

.     South  America.     Adam  and  Charles  Black,  London.     (1913). 

Lummis,  Charles  F.  The  Spanish  Pioneers.  A.  C.  MeClurg  &  Co., 
Chicago.      (1893).     292  pages.     Illustrated.     $1.00. 

Moses,  Bernard.  South  America  on  the  Eve  of  Emancipation. 
The  Southern  Spanish  colonies  the  last  half-century  of  their  de- 
pendence. G.  P.  Putnam's  Sons,  New  York  and  London.  (1908). 
$1.50. 

Mozans,  H.  J.  Along  the  Andes  and  Down  the  Amazon.  With 
an  introduction  by  Col.  Theodore  Roosevelt.  D.  Appleton  &  Co., 
New  York.     (1911).     $3.50. 

Palmer,  Frederick.  Central  America  and  Its  Problems.  An  ac- 
count of  a  journey  from  the  Rio  Grande  to  Panama  with  introductory 


478  APPENDIX 

chapters  on  Mexico  and  her  relations  to  her  neighbors.  Moffat, 
Yard  &  Co.,  New  York.    (1910).     $2.50. 

Pearson,  Henry  C.  The  Rubber  Country  of  the  Amazon.  A  de- 
tailed description  of  the  great  rubber  industry  of  the  Amazon  Valley, 
which  comprises  the  Brazilian  states  of  Para,  Amazonas  and  Matto 
Grosso,  the  territory  of  the  Acre,  the  montana  of  Peru  and  Bolivia, 
and  the  southern  portions  of  Colombia  and  Venezuela.  The  India 
Buhher  Woiid,  New  York. 

Peck,  Annie  S.  The  South  American  Tour.  George  H.  Doran 
Co.,  New  York.     (1913). 

Peixotto,  Ernest.  Pacific  Shores  from  Panama.  Charles  Scribner's 
Sons,  New  York.     (1913). 

Putnam,  George  Palmer.  The  Southland  of  North  America. 
Rambles  and  observations  in  Central  America  during  the  year  1912. 
G.  P.  Putnam's  Sons,  New  York.  (1913).  With  96  illustrations  from 
photographs  by  the  author.     $2.50. 

Ross,  Edward  Alsworth.  South  of  Panama.  Century  Co.,  New 
York.     $2.40. 

Ruhl,  Arthur.  The  Other  Americans.  The  cities,  the  countries, 
and  especially  the  people  of  South  America.  Charles  Scribner's  Sons, 
New  York.    (1908).    $2.00. 

Sears,  Anna.  Two  on  a  Tour  in  South  America.  D.  Appleton 
&  Co.,  New  York.  (1913).  Description  of  a  trip  around  the  coasts 
of  South  America.     $2.00. 

Shepherd,  William  R.  Latin  America.  Henry  Holt  &  Co.,  New 
York.    (1914).     $0.50. 

Van  Dyke,  Henry  Weston.  Through  South  America.  With  in- 
troduction by  John  Barrett,  Director  General  of  the  Pan-American 
Union.  Thomas  Y.  Crowell  Co.,  New  York.  (1912).  446  pages. 
Hlus.  maps,  80.     $1.50. 

Verrill,  A.  H.  South  and  Central  American  Trade  Conditions 
To-day.     Dodd  Mead  &  Co.     $1.25. 

Waleffe,  Maurice  de.  The  Fair  Land  of  Central  America.  Trans- 
lated by  Violette  M.  Montagu.  Preface  by  Sir  A.  Conan  Doyle. 
John  Long,  Ltd.,  London. 

Whitney,  Casper.  The  Flowing  Road.  Adventuring  on  the  great 
rivers  of  South  America.    J.  B.  Lippincott  Co.,  Philadelphia. 

Winter,  Nevin  O.  Guatemala  and  Her  People  of  Today.  Being  an 
account  of  the  land,  its  history  and  development.  The  people,  their 
customs  and  characteristics ;  to  which  are  added  chapters  on  British 
Honduras,  and  the  republic  of  Honduras,  with  reference  to  the  other 
countries  of  Central  America,  Salvador,  Nicaragua  and  Costa  Rica. 
L.  C.  Pa«:e  &  Co.,  Boston.    (1909).    $3.00. 


I 


APPENDIX  479 

Zahm,  Rev.  J.  A.     Through  South  America's  Southland.     D.  Ap- 
pleton  &  Co.,  New  York.    $3.50. 


BOOKS  AND  PUBLICATIONS  RELATING  TO  INDIVIDUAL 
LATIN  AMERICAN  COUNTRIES 

Below  are  listed  the  books  and  publications  relating  to  individual 
Latin  American  countries  which  will  be  found  of  value  by  the 
student.  Naturally  many  other  volumes  are  available  and  lists  thereof 
may  be  obtained  in  any  Public  Library. 

Argentina 

Argentina.  General  descriptive  data.  Illustrated.  Pan-American 
Union,  Washington,  D.  C.    Free. 

The  Argentina  Year  Book,  1914.  To  which  is  added  a  chapter  on 
the  republics  of  Uruguay  and  Paraguay.  Buenos  Aires,  Robert  Grant 
&  Co. 

Eraser,  John  Foster.  The  Amazing  Argentina.  Funk  &  Wagnalls. 
$1.50. 

Hammerton,  J.  A.  The  Real  Argentina.  Dodd  Mead  &  Co.,  New 
York.     (1914).     $2.50. 

Hirst,  W.  A.  Argentina.  With  an  introduction  by  Martin  Hume. 
Charles  Scribner's  Sons,  New  York.    (1910).     $3.00. 

Hutchinson,  Lincoln.  Trade  conditions  in  Argentina.  Special 
Agents  Series  No.  8.  (1916).  Department  of  Commerce,  Wash- 
ington, D.  C. 

Hurley,  Edward  N.  Banking  and  Credit  in  Argentina,  Brazil, 
Chile  and  Peru.  A  study  from  the  manufacturers'  point  of  view  of 
the  financial  environment  of  American  trade  in  the  countries  named. 
Special  Agents  Series  No.  90.  Department  of  Commerce,  Wash- 
ington, D.  C. 

Koebel,  W.  H.  Argentina ;  Past  and  Present.  Kegan  Paul  Trench 
Trubner  &  Co.,  London.  (1910).    Dodd,  Mead  &  Co.,  New  York.  $4.00. 

Modern  Argentina.  The  Eldorado  of  To-day.  With  note  on  Uru- 
guay and  Chile.     Dana  Estes  &  Co.,  Boston,  Mass. 

Lloyd,  Reginald  (Director  in  chief).  Twentieth  century  impres- 
sions of  Argentina.  Its  history,  people,  commerce,  industries  and 
resources.     Lloyd's   Greater  Britain   Publishing   Co.,   Ltd.,   London. 

Martinez,  Albert  B.  Baedeker  of  the  Argentina  Republic.  Includ- 
ing also  parts  of  Brazil,  the  republic  of  Uruguay,  Chile,  and  Bolivia. 
D,  Appleton  &  Co.,  New  York.    $3.00. 


480  APPENDIX 

Martinez,  Albert  B.,  and  Lewandowski,  M.  Argentina  in  the  Twen- 
tieth Century.     Chas.  Scribner's  Sons,  New  York.    (1915).    $1.50. 

Mills,  G.  J.  Argentina.  D.  Appleton  &  Co.,  New  York.  (1915). 
$1.50. 

Pennington,  A.  Stuart.  The  Argentina  Republic,  its  physical  fea- 
tures, history,  fauna,  flora,  geology,  literature  and  commerce.  Stanley 
Paul  &  Co.,  London.     F.  A.  Stokes  &  Co.,  New  York.    (1910).    $3.00. 

Santamarina,  J.  P.  The  Argentine  Republic.  Developments,  Facts 
and  Trade  Features.     J.  P.  Santamarina,  New  York. 

Whelpley,  James  Davenport.  Trade  Development  in  Argentina. 
Special  Agents  Series  No.  43.  (1911).  Department  of  Commerce, 
Washington,  D.   C. 

Winter,  Nevin  O.  Argentina  and  Her  People  of  Today.  An  ac- 
count of  the  customs,  characteristics,  amusements,  history  and  ad- 
vancement of  the  Argentinians,  and  the  development  and  resources 
of  their  country.    L.  C.  Page  &  Co.,  Boston.    $3.00. 

Bolivia 

'Bolivia.  General  descriptive  data  prepared  by  the  Pan-American 
Bureau,  Washington,  D.   C. 

Bandelier,  Adolph  Francis  Alphonse.  The  Island  of  Titicaca  and 
Koati.     Hispanic  Society  of  America,  New  York.     $5.00. 

Conway,  Sir  Martin.  The  Bolivian  Andes.  Harper  Bros.,  New 
York  and  London.     $3.00. 

Keane,  A.  H.     In  Stanford's  Compendium  of  Geography. 

Walle,  P.    Bolivia.    Chas.  Scribner's  Sons,  New  York.  (1914).  $3.00. 

Wright,  Marie  H.  Bolivia.  George  Barrie's  Sons,  Philadelphia, 
Pa.    (1907).     $10.00. 

Brazil 

Brazil.  General  descriptive  data.  Illustrated.  Pan-American 
Union,  Washington,  D.  C.     Free. 

Twentieth  Century  Impressions  of  Brazil.  Its  history,  people, 
commerce,  industries  and  resources.  Lloyd's  Greater  Britain  Pub- 
lishing Co.,  London.    (1913). 

Bruce,  G.  J.  Brazil  and  Brazilians.  Dodd,  Mead  &  Co.,  New 
York.     (1914).     307  pages.     $3.00. 

Buley,  E.  C.  North  Brazil,  1914.  South  Brazil,  1914.  D.  Appleton 
&  Co.,  New  York.     Each,  $1.50. 

Cook,  William  Anzel.  By  Horse,  Canoe  and  Float  Through  tho 
Wilderness  of  Brazil.    Werner  Co.,  Akron,  Ohio.     $1.25. 

Denis,  Pierre.     Brazil.     With  historical  chapter  by  Bernard  Miall. 


i 


APPENDIX  481 

T.  Fisher  Unwin,  London  and  Leipsic.  Dodd,  Mead  &  Co.,  New 
York.    $3.00. 

Domville-Fife,  Charles  W.  The  United  States  of  Brazil.  With 
a  chapter  on  the  Republic  of  Uruguay.  Francis  Griffiths,  London. 
(1910).     $2.50. 

Hutchinson,  Lincoln.  Trade  conditions  in  Brazil.  A  study  of  the 
position  of  the  United  States  in  the  Brazilian  market.  Special 
Agents  Series  No.  1.  (1906).  Department  of  Commerce,  Wash- 
ington, D.  C. 

Kerby,  Major  J.  Orton.  An  American  Consul  in  Amazonia.  Wil- 
liam Edwin  Eudge,  New  York.    (1911).     $2.50. 

Lange,  Algot.  In  the  Amazon  Jungle.  Adventures  in  remote 
parts  of  the  upper  Amazon  including  a  sojourn  among  cannibal 
Indians.  Edited  in  part  by  J.  Odell  Hauser  with  an  introduction  by 
Frederick  S.  Dellenbaugh.  G.  P.  Putnam's  Sons,  New  York  and 
London.     $2.50. 

Oakenfill,  J.  C.  Brazil  in  1911.  Pan-American  Union,  Washing- 
ton, D.  C.     Free. 

William,  J.  P.  Brazilian  Year  Book.  G.  R.  Fairbanks,  68  Broad 
Street,  New  York.     $11.00. 

Winter,  Nevin  O.  Brazil  and  Her  People  of  Today.  An  account 
of  the  customs,  characteristics,  amusements,  history  and  advancement 
of  the  Brazilians,  and  the  development  of  their  country.  L.  C.  Page 
&  Co.,  Boston.     $3.00. 

Wright,  Marie  Robinson.  The  Brazilian  National  Exposition  of 
1908,  in  Celebration  of  the  Centenary  of  the  Opening  of  Brazilian 
Ports  to  Commerce  of  the  World  by  the  Prince  Regent  Dom  Joao  VI 
of  Portugal  in  1908.     Geo.  Barrie  and  Sons,  Philadelphia. 

The  New  Brazil,  Its  Resources  and  Attractions,  Historical,  De- 
scriptive and  Industrial.  George  Barrie  &  Sons,  Philadelphia.  C. 
D.  Cazenove  &  Co.,  London  and  Paris.    $10.00. 

Chile 

Chile.  A  handbook.  Pan-American  Union,  Washington,  D.  C. 
Illustrated. 

Chile.  General  descriptive  data.  International  Bureau  of  Ameri- 
can Republics,  Washington,  D.  C. 

Twentieth  Century  Impressions  of  Chile.  Director  in  chief,  Regi- 
nald Lloyd.  Editors,  W.  Feldwick  and  L.  T.  Delaney.  Lloyd's  Great 
Britain  Publishing  Co.,  Ltd.     (1915).     568  pages. 

Municipal  Organization  of  Santiago  de  Chile.  Illustrated.  Pan- 
American  Union,  Washington,  D.  C. 


482  APPEI^DIX 

Canton,  Julio  Perez.  Chile.  An  account  of  its  wealth  and  prog- 
ress. With  an  introduction  by  Robert  P.  Porter.  George  Routledge 
and  Sons.,  Ltd.,  London.    Rand,  McNally  &  Co.,  Chicago.    $1.00. 

Chile,  Its  Wealth  and  Progress.  Rand,  McNally  &  Co.,  Chicago. 
$1.50. 

Elliot,  G.  F.  Scott  (M.  A.,  F.  R.  G.  S.).  Chile,  Its  History  and 
Development,  Natural  Features,  Products,  Commerce  and  Present 
Conditions.  T.  Fisher  tJnwin,  London.  Chas.  Scribner's  Sons,  New 
York,  $3.00. 

Keane,  A.  H.    In  Stanford's  Compendium  of  Geography. 

Koebel,  W.  H.  Modern  Chile.  G.  Bell  &  Sons,  Ltd.,  London. 
(1914).     Macmillan,  New  York.     $3.00. 

Maitland,  Francis  J.  G.  Chile.  Its  land  and  people,  natural 
features,  development  and  industrial  resources  of  a  great  South 
American  Republic.     Francis  Griffiths,  London.     (1914). 

Mansfield,  R.  E.  Progressive  Chile.  Meade  Publishing  Co.,  New 
York.    (1913).     $2.00. 

Mills,  G.  J.    Chile.    D.  Appleton  &  Co.,  New  York.    (1914).   $1.50. 

Ortuzar,  Adolfo  (Consul  General  of  Chile  in  the  United  States). 
Chile  of  Today.  Its  commerce,  its  production,  and  its  resources. 
National  yearly  publication  of  reference.  Subventioned  by  the 
Chilean  Government.     Tribune  Association,  New  York.    (1907). 

Poirier,  Eduardo.    Chile  en  1908, 1910.  Barcelona,  Santiago.  (1909). 

Smith,  W.  Anderson.  Temperate  Chile.  Adam  and  Charles 
Black,  London. 

Wright,  Marie  Robinson.  The  Republic  of  Chile.  The  growth, 
resources  and  industrial  conditions  of  a  great  nation.  George  Barrie 
&  Sons,  Philadelphia.  C.  D.  Cazenove  &  Son,  London  and  Paris. 
$10.00. 

Colombia 

Colombia.    A  Handbook.    Pan-American  Union,  Washington,  D.  C. 

Eder,  Phanor  James.  Colombia.  Charles  Scribner's  Sons,  New 
York.    (1913).     $3.00. 

Levine,  Y.  Colombia.  A  history  of  the  country,  the  people,  eco- 
nomics, business,  industries,  etc.     D.  Appleton  &  Co.,  New  York. 

Mozans,  H.  J.  Up  the  Orinoco  and  Down  the  Magdalena.  D. 
Appleton  &  Co.,  New  York.    (1910).     $3.00. 

Nicolas,  E.  C.  Across  Panama  and  Around  the  Caribbean.  H.  M. 
Caldwell  Co.,  Boston.     $1.00. 

Pepper,  Charles  M.  Trade  Conditions  in  Colombia.  Special 
Agents  Series  No.  16.  Department  of  Commerce,  Washington,  D.  C. 
$0.10. 


APPENDIX  483 

Petre,  Francis  Loraine.  The  Republic  of  Colombia.  An  account 
of  the  country,  its  people,  its  institutions  and  its  resources.  Edward 
Stanford,  London. 

Scriggs,  W.  L.  The  Colombian  and  Venezuelan  Republics.  Little, 
Brown  &  Co.    $1.75. 

Costa  Rica 

Costa  Rica.  General  descriptive  data.  Illustrated.  Pan-Ameri- 
can Union,  "Washington,  D.  C. 

Calvo,  Joaquin  Bernardo.  The  Republic  of  Costa  Rica.  Rand 
McNally  &  Co.,  Chicago  and  New  York. 

Palmer,  Frederick.  Central  America  and  Its  Problem.  Moffat, 
Yard  &  Co.,  New  York.     (1910).     $2.50. 

Vose,  Edward  Neville.  Costa  Rica.  No.  1  in  Commercial  Mono- 
graphs.   Dunn's  International  Review,  New  York. 

Waleffe,  Maurice  de.  The  Fair  Land  of  Central  America.  Trans- 
lated by  Violette  M.  Montagu.  Preface  by  Sir  A.  Conan  Doyle 
John  Long,  Ltd.,  London. 

Cuha 

Cuba.  General  descriptive  data.  Illustrated.  Pan-American 
Union,  Washington,  D.  C. 

Baedeker,  Karl.  The  United  States,  with  Excursions  to  Mexico, 
Cuba,  Porto  Rico,  and  Alaska.  Handbook  for  travelers.  Fourth 
revised  edition,     Karl  Baedeker,  Leipzic. 

Gral,  Dr.  Manuel  F.  Alfonso,  and  Martinez,  T.  Valero.  Cuba 
Before  the  World.  Souvenir  Guide  of  Cuba  Co.,  Havana.  (1915). 
223  pages.    $2.00. 

Hill,  R.  F.  Cuba  and  Porto  Rico  and  other  Islands  of  the  West 
Indies.     Century  Co.,  New  York.     $3.00. 

Lindsay,  Forbes.  Cuba  and  Her  People  of  Today.  An  account 
of  the  history  and  progress  of  the  island  previous  to  its  independ- 
ence— and  in  particular  an  examination  of  its  present  political  con- 
ditions, its  industries,  natural  resources  and  prospects.  L.  C.  Page 
&  Co.,  London.    $3.00. 

Pepper,  Charles  M.  (commercial  agent).  "Trade  Conditions  in 
Cuba."  Special  Agents  Series  No.  5  (1906).  Department  of  Com- 
merce, Washington,  D.  C. 

Reynolds,  Charles  B.  "Standard  Guide  to  Cuba."  A  new  and 
complete  guide  to  the  island  of  Cuba,  with  maps,  illustrations,  routes 
of  travel,  history  and  an  English-Spanish  phrase  book.  Foster  and 
Reynolds,  Havana  and  New  York.    50c. 


484  APPENDIX 

Kobinson,  A.  G.  "Cuba  as  a  Buyer  and  Seller."  Special  Agents 
Series  No.  61.     Department  of  Commerce,  Washington,  D.  C. 

.     "Cuba,  Old  and  New."    Longmans  Green  &  Co.,  New  York. 

(1915).     264  pages.     $1.75. 

Yerrill,  A.  H.  "Cuba  Past  and  Present."  Dodd,  Mead  &  Co., 
New  York.     (1914.)     $1.50. 

Wright,  Irene  A.     "Cuba."    Macmillan,  New  York.     (1910.) 

Ecuador 

"Ecuador."  General  Descriptive  data.  Illustrated.  Pan-American 
Union,  Washington,  D.  C. 

"Guia  del  Ecuador  Compania.  El  Ecuador."  Guia  comercial  e 
industrial  de  la  republica  editado  por  la  Compania  "Guia  del  Ecua- 
dor."    Artes  Graficas  de  E.  Rodenas,  Guayaquil. 

Enoch,  C.  Reginald  (F.R.G.S.).  "Ecuador.  Its  Ancient  and 
Modern  History,  Topography  and  Natural  Resources,  Industries  and 
Social  Development."     Charles  Scribner's  Sons,  New  York. 

Pepper,  Charles  M.  "Trade  Conditions  in  Ecuador."  Special 
Agents  Series  No.  19.    Department  of  Commerce,  Washington,  D.  C. 

Wolf,  Teodoro.  "Geografia  y  geologia  del  Ecuador."  Publicada 
por  orden  del  supremo  gobierno  de  la  republica.  F.  A.  Brockhaus, 
Leipzig. 

Guatemala 

"Guatemala."  General  descriptive  data.  Illustrated.  Pan- 
American  Union,  Washington,  D.  C. 

Brigham,  W.  J.  "Guatemala."  Chas.  Scribner's  Sons,  New  York. 
$5.00. 

Domville-Fife,  C.  W.  "Guatemala  and  the  States  of  Central 
America."    James  Pott  &  Co.,  New  York.    Price  $3.00. 

Neville,  Edward  (ed.).  "Guatemala."  Dun's  International  Re- 
view, New  York.     (1913). 

Winter,  Nevin  O.  "Guatemala  and  Her  Peoi)le  of  To-day."  An 
account  of  the  land,  its  history  and  development,  the  people,  their 
customs  and  characteristics.    Published  by  L.  C.  Page  &  Co.,  Boston. 

Haiti 

"Haiti."  General  descriptive  data.  Pan-American  Bureau,  Wash- 
ington, D.  C. 

Leger,  J.  N.  "Haiti,  Her  History  and  Her  Detractors."  Neale 
Publishing  Co.,  New  York  and  Washington.    $3.00. 


APPENDIX  485 

Honduras 

"Honduras."  General  descriptive  data.  Illustrated.  Pan-Ameri- 
can Union,  Washington,  D.  C. 

Keane,  A.  H.     In  "Stanford's  Compendium  of  Geography." 
Neville,  Edward  (ed.).     "The  Kepublic  of  Honduras."     Dun's  In- 
ternational Review,  New  York. 

Mexico 

"Mexico."  General  descriptive  data.  Pan-American  Union,  Wash- 
ington, D.  C. 

Blichfeldt,  E.  H.  "A  Mexican  Journal."  Thomas  T.  Crowell 
Co.,  New  York. 

Carson,  W.  E.  "Mexico,  the  Wonderland  of  the  South."  Mac- 
millan,  New  York.     (1914).     449  pages.     $2.50. 

Enock,  C.  Reginald.  "Mexico."  Its  ancient  and  modern  civiliza- 
tion, history  and  political  conditions,  etc.  Charles  Scribner's  Sons, 
New  York.     T.  Fisher  Unwin,  London.     $3.50. 

Fyfe,  Hamilton.  "The  Real  Mexico."  MacBride,  Nast  &  Co.,  New 
York.     (1914.)     $1.25. 

Goodrich,  Joseph  King.  "The  Coming  Mexico."  A.  C.  McClurg 
&  Co.,  Chicago. 

Hale,  Susan.  "Mexico."'  G.  P.  Putnam's  Sons,  New  York.  T. 
Fisher  Unwin,  London.     (1911.) 

MacHugh,  R.  J.  "Modern  Mexico."  Methuen  &  Co.,  Ltd.,  London. 
Dodd,  Mead  &  Co.,  New  York.     $3.00. 

Morris,  Charles.  "The  Story  of  Mexico."  A  land  of  conquest  and 
revolution.  John  C.  Winston  Co.,  Philadelphia.  (1914).  404  pages. 
$1.20. 

Pepper,  Charles  M.  (commercial  agent).  "Trade  Conditions  in 
Mexico."  Special  Agents  Series  No.  4.  Department  of  Commerce, 
Washington,  D.  C. 

Terry,  T.  Philip.  "Mexico.  Handbook  for  Travellers."  With 
two  maps  and  twenty-five  plans.  Sonora  News  Co.,  Mexico. 
Houghton,  Mifflin  &  Co.,  Boston.    $2.50. 

Winter,  Nevin  O.  "Mexico  and  Her  People  Today,  her  Civil 
Wars."  An  account  of  the  customs,  characteristics,  amusements, 
and  history  of  the  Mexicans.     L.  C.  Page  k  Co.,  Boston.     $3.00. 

Panama 

"Isthmian  Tourists'  Guide  and  Business  Directory."  A  directory 
of  the  republic  of  Panama  and  Colon.  Isthmian  Guide  and  Directory 
Co.,  Ancon. 


486  APPENDIX 

"Panama."  Commercial  monographs.  Dun's  International  Re- 
view, New  York. 

"Panama."  General  descriptive  data.  Pan-American  Union, 
Washington,  D.  C. 

Abbot,  Willis  J.  "Panama  and  the  Canal."  The  story  of  its 
achievement,  its  problems  and  its  prospects.  Dodd,  Mead  &  Co., 
New  York. 

"Panama  and  the  Canal  in  Picture  and  Prose."  Syndicate  Pub- 
lishing Co.,  New  York  and  London. 

Allen,  Emory  Adams.  "Our  Canal  in  Panama."  The  greatest 
achievement  in  the  world's  history.  United  States  Publishing  Com- 
pany, Cincinnati. 

Bullard,  Arthur.  "Panama,  the  Country,  the  Canal,  the  People." 
Macmillan,  New  York. 

Burriss,  Charles  Walker.  "Panama."  A  guide  to  the  Pacific 
Coast  from  Panama  to  San  Francisco  in  picture  and  word.  Kansas 
City.     50  cents. 

Collins,  John  O.    "The  Panama  Guide."    Vibert  &  Dixon,  Panama. 

Edwards,  Albert.  "Panama;  the  Canal,  the  Country  and  the  Peo- 
ple."    Macmillan,  New  York.     $2.50. 

Eraser,  John  Foster.  "Panama  and  What  It  Means."  Cassell  & 
Co.,  Ltd.,  London. 

Haskins,  Frederic  J.  "The  Panama  Canal."  Doubleday,  Page 
&  Co.  This  is  a  very  interesting  and  informative  account  of  the 
Panama  Canal. 

Haskins,  William  C.  "Guide  to  the  Republic  of  Panama  and 
Classified  Business  Directory."  A.  Bienknowski,  Ancon,  Canal  Zone, 
and  Panama  R.  P.     Star  and  Herald  Company,  Panama. 

Hutchison,  Lincoln.  "The  Panama  Canal  and  International 
Trade."  Macmillan,  New  York.  The  effect  of  the  opening  of  the 
canal  upon  the  trade  competition  of  the  leading  commercial  nations. 
$1.75. 

Lindsay,  C.  H.  Forbes.  "Panama  and  the  Canal  Today.  L.  C. 
Page  &  Co.,  Boston.     $3.00. 

"Panama.  The  Isthmus  and  the  Canal."  J.  C.  Winston  Co., 
Philadelphia. 

Scott,  R.  "The  Americans  in  Panama."  Statler  Publishing  Co., 
New  York. 

Paraguay 

"Paraguay."  General  descriptive  data.  Pan-American  Union, 
Washington,  D.  C. 

Bourgade,  E.  de  la  Dardye   (Dr.).     "Paraguay.     The  Land,  the 


APPENDIX  487 

People,    Natural    Wealth    and    Commercial    Capabilities."      George 
Philip  &  Son,  London  and  Liverpool. 

Hardy,  M.  E.  (D.Sc).     "Paraguay."    n.OO. 

Koebel,  W.  H.  "In  Jesuit  Land.  The  Jesuit  Missions  of  Para- 
guay." With  an  introduction  by  P.  B.  Cunningham  Graham.  Stan- 
ley, Paul  &  Co.,  London. 

Maedonald,  Alexander  K.  "Picturesque  Paraguay."  Sport,  pio- 
neering, travel.  A  land  of  promise.  Stockraising,  plantation  indus- 
tries, forest  products,  commercial  possibilities.  Charles  H.  Kelly, 
London. 

Peru 

"Peru."  General  descriptive  data.  Pan-American  Union,  Wash- 
ington, D.  C. 

Adams,  W.  H.  Davenport.  "The  Land  of  the  Incas  and  the  City 
of  the  Sun."  The  story  of  Francisco  Pizarro  and  the  conquest  of 
Peru.    Dana,  Estes  &  Co.,  Boston.    $1.00. 

Bingham,  Hiram.  "In  the  Wonderland  of  Peru."  Judd  &  Det- 
weiler,  Washington,  D.  C.  A  work  accomplished  by  the  Peruvian 
expedition  of  1912,  under  the  auspices  of  Yale  University  and  the 
National  Geographic   Society. 

Enoch,  C.  R.  "Andes  and  the  Amazon ;  Life  and  Travel  in  Peru." 
Chas.  Scribner's   Sons,  New  York.     (1910.)     $1.50. 

Garland,  Alexander.  "Peru  in  1906."  With  a  brief  historical  and 
geographical  sketch.  Translated  into  English  by  George  R.  Gepp. 
La  Industria,  Lima. 

Guinness,  Geraldine.  "Peru:  Its  Story,  People  and  Religion." 
Morgan  &  Scott,  London.    Fleming  H.  Revell  Co.,  New  York.    $2.50. 

Markham,  Clements  Robert.  "A  History  of  Peru."  Charles  H. 
Sergei  &  Co.,  Chicago. 

Martin,  P.  F.  "Peru  of  the  Twentieth  Century."  Longmans, 
Green  &  Co.     (1911.)     $4.20. 

Todd,  Millicent.  "Peru — a  Land  of  Contrasts."  Little,  Brown  & 
Co.,  Boston.     314  pages.     $2.00. 

Vivian,  E.  C.  "Peru."  D.  Appleton  &  Co.,  New  York.  (1914.) 
$1.50. 

Wright,  Marie  Robinson.  "The  Old  and  New  Peru."  A  stor^  of 
the  ancient  inheritance  and  the  modern  growth  and  enterprise  of 
a  great  nation.     George  Barrie  &  Sons,  Philadelphia.     $10.00. 

Salvador 

"Salvador."  General  descriptive  data,  Pan-American  Bureau^ 
Washington,  D.  C. 


488  APPENDIX 

LevBa,  J.    "The  Republic  of  Salvador."     (1913.) 

Martin,  Percy  F.  (F.R.G.S.).  "Salvador  of  the  Twentieth  Cen- 
tury." Edward  Arnold,  London.  (1911.)  Longmans,  Green  &  Co., 
New  York.     $4.20. 

Santo  Domingo 

Yerrill,  A.  H.  Porto  Rico  Past  and  Present  and  Santo  Domingo. 
Dodd,  Mead  &  Co.,  New  York.     (1914.) 

.       Santo    Domingo.      A    handbook.      Pan-American    Union, 

Washington,  D.  C. 

Uruguay 

"Twentieth  Century  Impressions  of  Uruguay."  Its  history,  people, 
commerce,  etc.    Lloyd's  Greater  Britain  Publishing  Co.,  Ltd.,  London. 

"Uruguay."  General  descriptive  data.  Pan-American  Union, 
Washington,  D.  C. 

Domville-Fife,  C.  W.  "Chapter  in  United  States  of  Brazil."  Jas. 
Patt  &  Co.,  New  York.     (1911.)     $2.50. 

Hammerton,  J.  A.  "Uruguay" — in  "The  Real  Argentina."  Dodd, 
Mead  &  Co.,  New  York.     $2.50. 

Koebel,  W.  H.  "Uruguay."  Charles  Scribner's  Sons,  New  York. 
T.  Fisher  Unwin,  London,  $3.00. 

Venezuela 

"Venezuela."  General  descriptive  data.  Pan-American  Union, 
Washington,  D.  C. 

Bates,  Lindon,  Jr.  "The  Path  of  the  Conquistadores."  Houghton, 
Mifflin  &  Co.,  Boston.  A  history  and  description  of  the  country  and 
people  of  Venezuela  and  Guiana,  etc. 

Curtis,  William  Eleroy.  "Venezuela;  a  Land  Where  It's  Always 
Summer."     Harper  &  Bros.,  New  York. 

Dalton,  Leanord  V.  (B.Sc.)  "Venezuela."  T.  Fisher  Unwin, 
London  and  Leipzig. 

PUBLICATIONS   OF  THE   PAN-AMERICAN  UNION 

From  the  Pan-American  Union  may  also  be  obtained  publications 
which  are  useful  in  the  study  of  trade  conditions  and  business  oppor- 
tunities in  Latin  America.  These  publications,  which  include  books, 
pamphlets,  maps,  etc.,  are  of  two  classes.  First,  those  which  are  free 
of  cost.  These  may  be  obtained  by  addressing  a  letter  to  a  United 
States  Senator  or  a  Memb(>r  of  Congress,  and  requesting  that  the 
Pan-American  Bureau  forward  a  copy.  Second,  those  for  which  a 
charge  is  made  to  cover  the  actual  cost  and  expense  of  printing. 


APPENDIX  489 

To  obtain  the  latter,  letters  should  be  addressed  to  the  Pan-American 
Union,  Washington,  D.  C.  Remittances  must  accompany  the  order 
and  must  be  made  in  cash,  by  post-office  money  order,  or  by  bank 
drafts  on  banks  in  New  York  City  or  Washington,  D.  C,  payable  to 
the  order  of  the  Pan-Ariierican  Bureau. 

Publications  Listed  Elsewhere. — In  the  general  list  of  publications 
relating  to  Latin  America  are  included  a  number  of  monographs  for 
freight  distribution  which  have  been  compiled  and  published  by  the 
Pan-American  Union.  A  complete  list  of  the  publications  of  the 
Union  may  be  had  upon  application. 

The  Principal  Publications. — Following  are  some  of  the  principal 
publications  which  are  available  at  the  prices  quoted : 

Bulletin  of  the  Pan-American  Union.  An  illustrated  monthly 
magazine.  This  is  a  carefully  edited  illustrated  magazine,  printed 
on  high-class  paper,  containing  many  interesting  illustrations  and 
half-tone  engravings.  It  gives  in  most  attractive,  readable  and  re- 
liable form  much  information,  descriptive,  commercial,  general,  and 
specific,  desired  by  all  classes  of  persons  interested  in  Pan-American 
progress  and  development.  The  subscription  to  the  English  edition 
is  $2.00  per  year. 

"Panama  Canal.  What  It  Is  and  What  It  Means."  A  handbook 
containing  much  valuable  information.     128  pages.     $1.00. 

"The  Pan-American  Union;  Peace,  Friendship,  Commerce."  By 
John  Barrett,  Director  General.  A  very  handsome  book  bound  in 
cloth,  containing  253  pages.  It  includes  an  account  of  the  history 
and  work  of  the  Union,  views  of  the  new  Pan-American  building, 
etc.    50  cents. 

"Mexico.  A  Geographical  and  Historical  Sketch."  Published  in 
1911.     Very  complete.     $1.00. 

Other  publications. — Among  the  other  publications  of  the  Bureau 
are  the  following:  "American  Constitutions,"  "Inter-Continental 
War  Eeports,"  "Patent  and  Trade-Mark  Laws,"  "Mining  and  Tariff 
Laws,"  "Maps";  a  series  of  addresses  delivered  at  various  times  and 
having  reference  to  Pan-America,  some  of  the  principal  ones  being 
"The  United  States  and  Latin  America,"  "Pan-Americanism,"  "Pan- 
American  Possibilities,"  "Contrasts  in  the  Development  of  Nation- 
ality in  the  Anglo-  and  Latin- American,"  etc. ;  bibliographical  bulle- 
tins; reports  containing  special  data,  by  countries. 

Sale  of  Bool-s  hy  Other  Publishers. — The  Pan-American  Bureau 
sells  certain  books  and  publications  of  other  publishers  for  the  con- 
venience of  its  correspondents.  These  naturally  concern  themselves 
with  Latin  American  topics  exclusively.  The  Bureau  also  reprints 
certain  government  publications. 


490  APPENDIX 

Miscellaneous  Technical  Wor^ks  Relating  to  Export  Trade. — There 
are  a  number  of  books  which  are  indispensable  to  the  manufacturer 
interested  in  export  trade.  The  purchase  of  these  volumes  will  be 
an  excellent  investment  and  their  frequent  consultation  will  be  found 
profitable.     A  list  of  these  works  will  be  found  on  page  — . 

PUBLICATIONS    OF    THE    BUREAU    OF    FOREIGN    AND 
DOMESTIC    COMMERCE 

The  growing  interest  in  Latin  American  trade  and  its  possibilities 
have  resulted  in  the  publication  of  many  bulletins  and  monographs 
by  the  Bureau  of  Foreign  and  Domestic  Commerce.  They  cover  a 
wide  field  and  are  valuable  in  the  study  of  Latin  American  conditions. 

What  Commercial  Agents'  Reports  Are. — Commercial  agents'  re- 
ports are  generally  of  two  classes :  those  which  deal  with  trade  con- 
ditions, and  those  relating  to  specific  lines  of  merchandise.  In  addi- 
tion, numerous  other  reports  have  been  published  concerning  cer- 
tain specific  problems  in  exporting.  These  will  be  found  to  con- 
tain many  practical  suggestions. 

The  Use  of  Manuscript  Reports. — The  Bureau  of  Foreign  and 
Domestic  Connnerce  receives  from  various  sources  reports  on  different 
lines  of  trade  and  manufactures.  As  the  demand  for  these  is  not 
sufiiciently  great  to  justify  their  publication  they  are  kept  in  manu- 
script form.  Upon  application  they  are  sent  to  interested  manu- 
facturers and  exporters,  who  may  glean  from  them  valuable  sugges- 
tions. Among  reports  in  manuscript  of  this  character  are  the  fol- 
lowing: "Foreign  Markets  for  Wire  Rope,"  "Belting  Trade  in  Latin 
America,"  "Sawmill  and  Woodworking  Machinery,"  "Adding  and 
Calculating  Machines,"  "Production  of  Quick  Silver,  Lead  and  Zinc 
in  Foreign  Countries." 

The  Use  of  Annual  Reports  of  Consular  Officers. — A  source  of 
much  information  which  can  be  drawn  upon  freely  for  the  purpose 
of  obtaining  data  regarding  the  possibilities  of  the  various  coun- 
tries is  the  annual  reports  exacted  of  American  Consular  officers. 
These  reports  cover  the  entire  country  or  district  to  which  the  Consul 
is  assigned.  They  embrace  a  review  of  the  general  commercial  and 
industrial  conditions  for  the  year,  and  point  out  the  changes  which 
are  occurring,  together  with  an  outline  of  opportunities  for  the  sale 
of  American  manufactures. 

A  complete  list  of  the  publications  of  the  Department  of  Com- 
merce av^lable  for  distribution,  revised  and  corrected  to  date  of 
ibsue,  is  published  about  twice  each  year  and  contains  general  infor- 
mation concerning  the  publications  issued  by  the  department.     Per- 


APPENDIX  491 

Sons  desiring  to  have  their  names  placed  on  the  mailing  list  to  receive 
copies  of  either  the  complete  list  or  the  monthly  list  should  address 
the  Chief  Division  of  Publications,  Department  of  Commerce,  Wash- 
ington, D.  C. 

The  free  distribution  of  many  of  the  publications  of  the  Depart- 
ment is  confined  to  libraries,  educational  institutions,  the  press  and 
commercial  organizations. 


PUBLICATIONS  OF  THE  DEPAETMENT  OF  COMMERCE 

Following  is  a  list  of  the  principal  publications  of  the  department 
of  commerce  which  will  be  of  interest  to  the  student  of  Latin  Ameri- 
can trade  problems.  The  publications  listed  below  may  be  procured 
at  the  prices  specified  by  remittance  to  the  Superintendent  of  Docu- 
ments, Government  Printing  Ofl&ce,  Washington,  D.  C.  Remittances 
should  be  made  by  postal  money  order,  express  order,  or  New  York 
draft.  Postage  stamps  and  uncertified  checks  are  not  accepted.  No 
charge  is  made  for  postage  on  documents  forwarded  to  points  in  the 
United  States. 

REPORTS  ON  SPECIFIC  TRADES 

Besides  the  general  reports  on  Latin  American  trade  which  are 
issued  by  the  Department  of  Commerce,  there  are  available  reports 
compiled  for  specific  industries  or  branches  of  commerce.  Some  of 
the  principal  ones  are  listed  below.  A  complete  list  of  such  publica- 
tions may  be  had  upon  application  to  the  Chief,  Division  of  Publica- 
tions, Department  of  Commerce,  Washington,  D.  C. 

Canned  Goods 

Thayer,  E.  A.  "South  American  Trade  in  Canned  Goods."  Spe- 
cial Agents  Series  No.  87  (1914).    Price  5  cents. 

Coal 

"Coal  Trade  in  Latin  America."  Special  Consular  Reports  No. 
43,  part  I  (1910).    Price  5  cents. 

Coohing  Fat 

"Cooking  Fats  in  South  America."  Special  Consular  Series  No. 
67  (1915).    Price  5  cents. 


492  APPENDIX 

Cotton  a7id  Cotton  Goods 

Clark,  W.  A.  Graham.  "Cotton  Goods  in  Latin  America,"  part  I. 
Cuba,  Mexico  and  Central  America.  Special  Agents  Series  No.  31 
(1909).     Price  10  cents. 

"Cotton  Goods  in  Latin  America,"  part  II.  Brazil,  Colombia,  and 
Venezuela.     Special  Agents  Series  No.  36  (1910).     Price  10  cents. 

"Cotton  Goods  in  Latin  America,"  part  III.  Argentine,  Uruguay 
and  Paraguay.  Special  Agents  Series  No.  40  (1910).  Edition 
exhausted. 

"Cotton  Goods  in  Latin  America,"  part  IV.  Chile,  Bolivia,  Peru, 
Ecuador,  Jamaica  and  Porto  Rico.  Special  Agents  Series  No.  44 
(1911).     Price  10  cents. 

Drugs,  Patent  Medicine,  Etc. 

Whayer,  E.  D.  "South  American  Markets  for  Drug  Products, 
Patent  and  Proprietary  Medicines,  Surgical  Instruments  and  Dental 
Supplies."     Special  Agents  Series  No.  85.     Price  10  cents. 

Flour  and  WJteat 

Turner,  John  M.  "Flour  Trade  in  Latin  America,"  part  I,  Porto 
Rico.     Special  Agents  Series  No.  35  (1910).     Price  5  cents. 

Iron  and  Steel 

Brill,  S.  S.  "Hardware  Markets  of  South  America."  Special 
Agents  Series.  The  monograph  will  be  ready  for  distribution  early 
in  1916. 

Jewelry  and  Silverware 

"South  American  Market  for  Jewelry  and  Silverware."  Special 
Consular  Series  No.  70  (1915).     Price  5  cents. 

Lumber 

Simmons,  R.  E.  "Lumber  Markets  of  South  America."  Special 
Agents  Series.     Price  5  cents. 

Machinery  and  Machine  Tools 

"Machine  Tools  in  Latin  America."  Special  Consular  Reports 
No.  58  (1913).     Price  5  cents. 

Masscl,  J.  A.  "Machinery  and  Machine  Tools  in  South  America." 
Special  Agents  Series. 


APPENDIX  493 

Mining 

"Zinc  Industry  in  Mexico."  Special  Consular  Series  No.  41,  part 
II  (1909).    Edition  exhausted. 

Motor  Vehicles 

"Development  of  Motor- Vehicle  Trade  Abroad."  Special  Consular 
Reports  No.  59  (1913).  Supplements  Special  Consular  Reports  No. 
53.    Price  5  cents. 

"Foreign  Markets  for  Motors  and  Vehicles."  Special  Considar 
Reports  No.  53  (1912).  Presents  information  as  to  number  of  cars 
in  use,  domestic  production,  imports,  exports,  prices,  etc.  Price 
10  cents. 

"Motor  Machines."  Special  Consular  Series  No.  40,  Part  I.  Price: 
part  I,  15  cents;  part  II,  15  cents. 

Musical  Instruments 

"Foreign  Trade  in  Musical  Instruments."  Special  Consular  Re- 
ports No.  55  (1912),     Price  10  cents. 

Optical  Goods 
"Optical-Goods   Trade  in  Foreign  Countries."      Special   Consular 


Reports  No.  46  (1911).     Price  10  cents. 


Paints  and  Varnishes 

"Foreign  Trade  in  Paints  and  Varnishes."  Special  Consular  Re- 
ports No.  56  (1912).  Discusses  demand  for  paints,  pigments,  and 
varnishes,  the  sources  of  supply,  domestic  production,  imports,  cli- 
matic conditions  affecting  class  of  paints  sold,  etc.     Price  10  cents. 


Shoe  and  Leather  Trade 

Butman,  Arthur  B.  "Shoe  and  Leather  Trade  in  Argentina,  Chile, 
Peru  and  Uruguay."  Special  Agents  Series  No.  37  (1910).  Price 
10  cents. 

"Shoe  and  Leather  Trade  in  Brazil,  Venezuela  and  Barbados." 
Special  Agents  Series  No.  41  (1910).     Price  5  cents. 

"Shoe  and  Leather  Trade  in  Cuhn  and  Mexico,"  Special  Agents 
Series  No.  33  (1909).    Edition  exhausted. 


494  APPENDIX 

Soap 

"South  American  Market  for  Soap."  Special  Consular  Series  No. 
66  (1915).  A  summary  of  the  conditions  obtaining  in  the  soap  trade 
of  the  South  American  countries,  the  present  and  past  sources  of 
supply,  the  kinds  of  soap  in  favor,  etc.     Price  5  cents. 

ADVERTISING  MEDIUMS 

''Foreign  Publications  for  Advertising  American  Goods."  Miscel- 
laneous Series  No.  10  (1913).  Gives  a  general  idea  of  the  cost  of 
advertising  in  some  of  the  principal  newspapers  and  periodicals 
throughout  the  world,  the  lines  of  trades  represented,  circulation, 
subscription,  price,  etc.    Price  25  cents. 

BANKING  AND  CREDIT 

Wolfe,  Archibald  J.  "Foreign  Credits."  Special  Agents  Serie* 
No.  62  (1913).     Price  30  cents. 

Hurley,  E.  N.  "Banking  and  Credit  in  Argentina,  Brazil,  Chile 
and  Peru."     Special  Agents  Series  No.  90.     Price  10  cents. 

Lough,  William  H.  "Banking  Opportunities  in  South  America." 
Special  Agents  Series  No.  106  (1915).     Price  10  cents. 

"Financial  Developments  in  South  American  Countries."  Spe- 
cial Agents  Series  No.  103.    Price  5  cents. 

COMMERCE  REPORTS 

Commerce  Reports.  Published  daily  with  supplements  containing 
annual  reviews  of  trade  by  the  consuls  covering  every  country  of  the 
world.  Price  $2.50  jier  year,  or  $6.00  for  the  four  quarterly  volumes 
bound  in  cloth  with  complete  index.     Single  copies  of  the  daily,  5 

cents. 

CONVERSION  TABLES,  ETC. 

"Factors  in  Foreign  Trade."  Miscellaneous  Series  No.  Y  (1912). 
States  language  used  in  foreign  countries,  currency  with  equivalents 
in  United  States  money;  weights  and  measures  with  equivalents  in 
United  States  terms,  etc.     Price  5  cents. 

PACKING  FOR  EXPORT 

"Consular  Recommendations  on  South  American  Trade."  Mis- 
cellaneous Series  No.  20  (1914).     Price  5  cents. 

"Packing  for  Export."  Miscelhineous  Series  No.  5  (1911).  Con- 
tains  general   statements    as    to    responsibility    for    proper    packing, 


APPENDIX  455 

aim  of  packer,  methods  of  transportation,  climatic  conditions,  etc. 
Price  15  cents. 

GENERAL  TRADE  CONDITIONS 

"Export  Trade  Suggestions."  Special  Agents  Series  No.  33.  Price 
15  cents. 

"Statements  on  the  Latin-American  Trade  Situation."  Miscel- 
laneous Series  No.  18   (1914).     Price  5  cents. 

"Trade  Conditions  in  Central  America  and  on  the  West  Coast  of 
South  America."  Special  Agents  Series  No.  9  (190G).  Edition 
exhausted. 

"Winning  Foreign  Markets."  Special  Consular  Series  No.  41, 
part  I  (1908).    Price  25  cents. 

Albrecht,  Charles  H.  "Development  of  the  Dominican  Republic." 
Special  Consular  Reports  No.  65.     Price  5  cents. 

Butman,  Arthur  B.  "Trade  Conditions  in  Mexico."  Special 
Agents  Series  No.  4  (1906).     Edition  exhausted. 

.     "Trade  Conditions  in  Mexico."     Special  Agents  Series  No. 

22  (1908).     Edition  exhausted. 

Harris,  Gerrard.  "Central  America  as  an  Export  Field."  Special 
Agents  Series.    Price  30  cents. 

Hutchinson,  Lincoln.  "Trade  Conditions  in  Brazil."  Special 
Agents  Series  No.  1  (1906).     Edition  exhausted. 

Pepper,  Charles  M.  "Trade  Conditions  in  Colombia."  Special 
Agents  Series  No.  16  (1907). 

.     "Trade  Conditions  in  Cuba."     Special  Agents   Series   No. 

5   (1906).     Edition  exhausted. 

.      "Trade    Conditions    in   Ecuador."      Special   Agents    Series 

No.  19   (1908). 

.     "Trade  Conditions  on  the  West  Coast  of  South  America." 

Special  Agents  Series  No.  21  (1908).     Edition  exhausted. 

Robinson,  A.  G.  "Cuba  as  a  Buyer  and  Seller."  Special  Agents 
Series  No.  61  (1912).    Price  5  cents. 

Turner,  John  M.  "Trade  Developments  in  Latin  America."  Spe- 
cial Agents  Series  No.  34  (1911).    Price  5  cents. 

Whelpley,  James  Davenport.  "Trade  Development  in  Argentina." 
Special  Agents  Series  No.  43  (1911).     Price  10  cents. 

Wilson,  Otto.  "South  America  as  an  Export  Field."  Special 
Agents  Series  No.  81.    Price  25  cents. 

STATISTICAL  PUBLICATIONS 

"Annual  Review  of  the  Foreign  Commerce  of  the  United  States 
(1913)."    Miscellaneous  Series  No.  14.    Price  5  cents. 


496  ,  APPENDIX 

"Commerce  and  Navigation."  Annual  statement  of  the  commerce 
of  the  United  States,  presenting  in  great  detail  the  trade  by  articles 
and  countries,  stating  the  countries  from  which  article  or  class  of 
articles  is  imported  and  to  which  each  article  or  class  of  articles 
is  exported  during  a  five-year  period,  etc.     Price  $1.00. 

"Commercial  Relations  of  the  United  States  with  Foreign  Coun- 
tries." Presents  tables  of  imports  and  exports  of  each  country  of 
the  world,  compiled  from  its  own  statistics,  etc.    Price  40  cents. 

Monthly  Summary  of  Commerce  and  Finance.  Presents  sta- 
tistics of  the  foreign  commerce  of  the  United  States  for  the  month 
of  issue  and  for  the  accumulated  period  ended  with  the  month  of 
issue,  with  comparative  figures  for  corresponding  periods  of  previous 
years,  etc.    Annual  subscription  price  $1.50.    Single  copies  15  cents. 

"Statistical  Abstract  of  the  United  States."  Published  annually. 
Price  50  cents. 

"Trade  of  the  United  States  with  other  American  Countries.'' 
Miscellaneous  Series  No.  23  (1915).     Price  20  cents. 

"Trade  of  the  United  States  with  the  World."  Miscellaneous 
Series  No,  15.    Price  15  cents. 

TRANSPORTATION  RATES  AND  FACILITIES 

Gueydan,  E.  H.  "Transportation  Facilities  of  Colombia  and 
Venezuela."     Special  Agents   Series. 

Sheridan,  F.  J.  "Transportation  Rates  to  the  West  Coast  of  South 
America."     Special  Agents  Series  No.  T2  (1913).     Price  10  cents. 

JOURNALS  RELATING  TO  LATIN  AMERICA 

The  growing  interest  in  Latin  American  affairs  is  proven  by  the 
rapidly  increasing  number  of  journals  which  circulate  in  the  South- 
ern Republics.  The  following  list  will  be  found  of  interest  and 
value. 

American  Exporter  (with  Domestic  Supplement).  Johnston  Ex- 
port Publishing  Co.,  17  Battery  Place,  New  York.  Annual  subscrip- 
tion $3.00.  Single  copies  25  cents.  (Also  Spanish  and  Portuguese 
editions.) 

Commercial  America.  Philadelphia  Connnercial  Museum,  Phila- 
delphia, Pa.     Annual  subscription  $1.50.     Single  copies  15  cents. 

Continental.  25  Broad  St.,  New  York.  Monthly.  Spanish.  An- 
nual subscription  $1.50.     Single  copies  15  cents. 

Cuba  Review.  Munson  Steamship  Line,  82  Beaver  Street.  Annual 
subscription  $1.00.     Single  copies  10  cents. 


APPE^^DIX  497 

Dun's  International  Review.  R.  G.  Duu  &  Co.,  290  Broadway,  New 
York.    Annual  subscription  $3.00.     Single  copies  25  cents. 

El  Comercio  (in  Spanish).  J.  Shepherd  Clark  Co.,  11-i  Liberty 
Street,  New  York.  Annual  subscription  $3.00.  Single  copies  30 
cents. 

El  Espejo  de  la  Moda.  Butterick  Publishing  Co.,  Mailers  Building, 
Chicago,  111.  Monthly.  A  fashion  magazine.  Distributed  in  Latin 
America. 

El  Indicador  Comercial  (in  Spanish).  Indicador  Mercantile  Co., 
1328  Broadway,  New  York.     Distributed  free  in  Latin  America. 

El  Mercurio  (in  Spanish).  Mercurio  Publishing  Co.,  New  Or- 
leans, La.     Annual  subscription  $1.50.     Single  copies  15  cents. 

El  Mundo  de  Hoy  (in  Spanish).  Doubleday,  Page  &  Co.,  Garden 
City,  Long  Island.  Monthly.  Annual  subscription  $3.00.  Single 
copies  25  cents.     (Spanish  edition  of  The  World's  Work.) 

El  Norte  Americano  (in  Spanish).  South  American  Publishing 
Co.,  No.  1  Broadway,  New  York.  Annual  subscription  $1.00.  Single 
copies  10  cents. 

Export  American  Industries.  Steven  de  Csesznak,  Inc.,  30  Church 
Street,  New  York.  Annual  subscription  $2.00.  Single  copies  25 
cents.     (Also  Spanish  edition.) 

Exporters-Importers  Journal.  Henry  W.  Peabody  &  Co.,  17  State 
Street,  New  York.  Annual  subscription  $5.00.  Single  copies  50 
cents. 

Exporter's  Review.  Exporter's  Encyclopedia  Co.,  80  Broad 
Street,  New  York.  Annual  subscription  $3.00.  Single  copies  25 
cents. 

La  Hacienda  (in  Spanish  and  Portuguese).  La  Hacienda 
Co.,  Buffalo,  N.  Y.  Annual  subscription  $3.00.  Single  copies  25 
cents. 

Las  Americas.  Official  organ  of  Las  Americas  Association.  Hotel 
McAlpin,  New  York.  Spanish.  Annual  subscription  price  $3.00. 
Single  copies  25  cents. 

Las  Novedades  (in  Spanish).  Francisco  J.  Peynado  &  J.  B. 
Vicini  de  Burgos,  225  W.  39th  Street,  New  York.  Daily.  Annual 
subscription  $5.00.     Single  copies  12  cents. 

La  Prensa  (in  Spanish).  Viera  Publishing  Co.,  24  Stone  Street, 
New  York.  Weekly.  Annual  subscription  $2.50.  Single  copies 
5  cents. 

Latin  America.  502  Board  of  Trade  Building,  New  Orleans.  Semi- 
monthly. English  and  Spanish.  Annual  subscription  $2.00.  Single 
copies   10  cents. 

National   Foreign   Trade.      National   Foreign   Trade   Council,    G4 


498  APPENDIX 

Stone  Street,  New  York.  Monthly.  Sent  free  to  all  interested  in 
foreign  trade. 

Pictorial  Review.  216  West  31st  St.,  New  York.  Spanish  edi- 
tion. "De  Luxe"  and  "Economica."  Annual  subscription  $1.50. 
Single  copies  15  cents.  (Other  publication  of  same  journal.  Arte  de 
Vestir.) 

Sister  Republics.  Denver,  Colo.  Quarterly.  English  and  Span- 
ish.    Annual  subscription  50  cents.     Single  copies  5  cents. 

The  Americas.  National  City  Bank,  Foreign  Department,  New 
York.    .Eree  upon  application. 

The  Nation's  Business.  Chamber  of  Commerce  of  the  United 
States  of  America,  Washington,  D.  C.  Annual  subscription  $1.00. 
Single  copies  10  cents. 

The  Pan-American  Bulletin.  Pan-American  Bureati,  Washington, 
D.  C.    Annual  subscription  $2.00.     Single  copies  25  cents. 

The  Pan-America  Directory.  Pan-America  Directory  Corporation, 
212  Broadway,  New  York.  Issues  a  directory  of  U.  S.  manufacturers, 
circulated  among  business  men,  importers,  etc.  Published  semi- 
annually, April,  October.  Claimed  circulation  100,000  (50,000  each). 
Advertising  rates  (two  issues)  :  1  page  $400,  half-page  $250,  quarter- 
page  $150,  eighth-page  $90.  For  one  issue  only,  20  per  cent,  advance.- 
Page  size  8  by  10. 

The  Pan-American  Magazine.  Pan-American  Magazine  (Inc.), 
35  W.  32d  Street,  New  York.  Annual  subscription  $2.50.  Single 
copies  25  cents. 

The  Pan-American  Revietv.  Canal-Louisiana  Bank  Bldg.  Eng- 
lish and  Spanish  monthly.  Annual  subscription  $3.00.  Single  copies 
25  cents. 

The  South  American.  South  American  Publishing  Co.,  Lie,  No.  1 
Broadway,  New  York.  Annual  subscription  $1.00.  Single  copies  10 
cents. 


TYPICAL  ADVERTISING  RATES  IN  EXPORT  JOURNALS 

The  rates  given  below  are  naturally  subject  to  some  variation  de- 
pendent upon  specific  conditions  in  the  contracts  for  space.  Inva- 
riably rates  are  high  for  contracts  of  less  than  twelve  months'  dura- 
tion. Additional  charges  are  generally  made  for  covers,  for  special 
locations  opposite  reading  matter,  etc.  These  rates  will,  however,  be 
found  useful  in  making  comparisons.  Naturally  circulation  and 
rates  are  subject  to  change. 


APPENDIX 


499 


Monthly 
Circula- 
tion 


Dimension 


Single 
Inser- 
tion 


Six 
Months' 
Contract 


Twelve 
Months' 
Contract 


American  Exporter 
(Spanish  Edition) 

*Dun's  Review. . . . 
El  Comercio 


El  Inclicador  Mercantil. 


Export  American  Indus- 
tries      

40,000 

Spanish  edition,  App. . .  . 
English  edition,  App. .  .  . 

2.5,000 
1.5,000 

Exporters  and  Importers 
Journal   

1.5,000 

Exporters'  Review 

La  Hacienda 

30,831 

Mercurio 

14,059 

The  Cuba  Review 

4,000 

El  Espejo  de  la  Moda  . 


28,709 


i,37S 


full  page 


full  page 


full  page 


full  page 

Vi      " 
Vi      " 

full  page 

H        " 
H      " 

full  page 
'A      " 
H      " 

full  page 

14      " 
H      " 

full  page 

}4      " 
'A      " 

full  page 

14      " 
H      " 

full  page 


7x10 


10Mx6?i 

10Jix3Vi6 

51^x3^16 

7x10 

7x4  3^ 
3^8x4Ji 


9xl2>^ 

43'2Xl2l2 

3x9 


7x9  J  g 
7x4  l-i 

7x2  5-8 

7Hx9Vs 
3,^2x4^ 


$100.00 
60.00 
33.00 

12.5.00 
68.75 
37.50 


100.00 
60.00 
35.00 

156.25 
93.75 

58.85 


140.00 
80 .  00 
45.00 

140.00 
80.00 
48.00 


48.00 
24.00 
12.00 


$92.00 
55.00 
32.20 

115.00 
63.25 
34.50 

100.00 
60.00 
40.00 

85.00 
50.00 
30.00 

144.15 
86.25 
54.15 


2,50.00 

140.00 

80.00 


per  colum 


$80.00 
48.00 
28.00 

100.00 
55.00 
30.00 

90.00 
50.00 
30.00 

80.00 
45.00 
27.50 

125.00 
75.00 
47.08 


1,000. 00| 
500.00 
300.00 

4.50.00 
240.00 
1.30.00 

126.00 
72.00 
43.20 

51.20 
32.00 
19.20 


per  inaertn 


*  Both  English  and  Spanish  Editions. 

LIST  OF  THE  PEIXCIPAL  DIKECTORIES  OF  THE  LATIN 
AMERICAN  REPUBLICS  ^ 

The  following  is  a  list  of  the  principal  directories  of  the  Latin 
American  Republics.  New  volumes  are  constantly  appearing  and 
should  be  used  as  quickly  as  available. 


Argentine  FepuMic 

Buenos  Aires.     Robert  Grant  &  Co.,  Cangallo,  542.     $3.00  m/n. 
English  address  book  of  residents  in  the  Argentine  and  Uruguayan 

'  Many  of  the  foreign  directories  inaj'  be  obtained  from  Felix  Rey  de 
Ca-itro,  55  Broadway,  New  York  City, 


500  APPENDIX 

Republics  of  British  and  North  American  nationality  or  descent. 
Robert   Grant   &    Co. 

Guia  Kraft  (1915).  Buenos  Aires,  G.  Kraft,  Cangallo,  641.  $4.84 
gold. 

Guia  Nacional  de  la  Republican  Argentina.  Pablo  Basch  (1907). 
Buenos  Aires,  Guemes  431. 

Guia  Periodistica  Argentina.  Lerose  &  Montmassin,  440  Calle 
Larrea,  Buenos  Aires.  A  newspaper  and  magazine  directoiy  of 
Argentina. 

The  English  Standard  Directory  of  the  Argentine  Republic  (1914). 
Edward  &  Ease,  Libertad  543,  Buenos  Aires. 

Bolivia 

Guia  Comercial  de  la  Ciudad  de  La  Paz  (1901).  La  Paz,  Calle 
Lanza  No.  4.    Propietarios,  Mugia  y  Gimenez. 

Brazil 

Almanach  de  Pernambuco  para  e  anno  de  1907.  Recife,  Rua  Barao 
da  Victoria  37. 

Almanak  administrativo,  mercantil  e  industrial  do  Estado  No.  do 
para  1904-5.     Editores,  F.   Cardoso  &  Co.,  Para,  Brazil. 

Almanak  administrativo,  mercantil  e  industrial  de  Rio  de  Janeiro 
e  indicador  para  1907.  Editora  e  propietaria,  Companhia  Typo- 
graphica  do  Brazil  Rua  dos  Invalidos  93,  Rio  de  Janeiro. 

Almanak  do  Estado  da  Bahia  (1909).  Bahia,  Reis  &  Co.,  Rua  Dr. 
Manoel  Victoriano,  23.     5$000  (1.56). 

Almanak  Laemmert,  Annuario  administrativo  agricola,  profissional, 
mercantil  e  industrial  de  Rio  de  Janeiro  e  indicador  para  1911-12. 
Rua  Sete  de  Setembro  No.  34.     15$000. 

Same  of  Brazilian  States.     15$000.     Both  volumes,  30$000. 

Almanaque  Braziliero  Garnicr  (1914).  Rio  de  Janeiro,  109  Rua 
do  Ouvidor. 

Annuario  Commercial  do  Estado  de  Sao  Paulo  (1905-6).  Sao 
Paulo,  Proprietaries  Medeiros  &  Comp.  Rua  do  Carmo  No.  15. 
Price,  with  postage,  L  1.0. 

Indicadoe  Commercial  Santista  (1908).  Organizadores  Laercio 
Trinidade  e  A.  L.  Ventura.  Caixa  de  Correio  No.  255.  Santos, 
Brazil. 

Chile 

Annuario  Prado  Martinez  (1903).  Santiago  de  Chile  Centre 
Editorial  de  AHxjrto  Prado  Martinez,  Aluiada  de  las  Deliciasj  No.  281, 


APPENDIX  501 

Annuario  Zig-Zag — Guia  General  de  Chile  (1914).  Published  by 
the  Empresa  Zig-Zag,  Teatinos  666,  Santiago.     $1.50. 

El  Libro  Azul.  Directorio  Profesional,  Commercial  e  industrial 
de  Chile,  Santiago  (1910-11). 

Guia  Sud- Americana  y  General  de  Chile  (1910-11).  Calle  Coch- 
rane 70,  Valp.    L5 

Colomhia 

Directorio  General  de  Colombia  (1898).  Autor  propietario, 
Lisimaco  Palua.     Bogota,  Imprenta  Nacional. 

Guia  del  Comercio  de  Bogota  (1905).  Julio  Parga  Polania 
Bogota,  Escuela  Tip.     Salesiana. 

Guia  y  Directorio  de  la  Ciudad  de  Catagena  (1907).  Cartagena, 
Tip.     "La  Patria"  Editores,  Yllan  Ferrer  &  Co. 


Costa  Rica 

Directorio  Comercial  y  Arancel  de  Aduanas  de  la  Republica  de 
Costa  Rica  (1908).  Libreria  e  Imprenta  de  Antonio  Lehman,  San 
Jose.     By  James  McScott.     5  colones. 

Guia  directorio  de  la  Ciudad  de  San  Jose  por  Genaro  Peralta  F. 
(1905).  San  Jose  de  Costa  Rica,  Imprenta  de  Antonio  Lehman, 
Avenida  Central  Oesta  No.  48. 

Guia  directorio  de  la  Republica  de  Costa  Rica  (1905).  Editor- 
Propietario  Arturo  del  Valle.  San  Jose  de  Costa  Rica,  Imprenta  de 
Avelino  Alsina,  Apartado  249. 


Cuba 

Guia-Directorio  del  Comercio,  profesiones  e  industria  de  la  Isla 
de  Cuba  (1915).  Bailly-Balliere  Exclusive  agent  for  island  of  Cuba, 
Luis  Gimenez  Herranz,  Aguiar  101,  Habana. 

Directorio  general  de  la  Republica  de  Cuba  (1907-8).  Editores 
propietarios  Compania  del  Dorectorio  General,  Habana,  Rambla  y 
Bouza,  Obispo  No.  33.    $5.30  gold. 

Directory  of  Cuba.  Universal  Publicity  Co.,  45  W.  34th  Street, 
New  York. 

Ecuador 

Guia  Comercial  de  Quito  y  Guayaquil  (1906).  J.  F.  Lassus  Corde- 
ville,  editor,  Quito  Imprenta  y  Encuadernacion  Salesiana. 


503  APPENDIX 

Guatemala 

Directorio  Official  y  Guia  General  de  la  Republica,  1915-1916. 
Marroquin  Hermanos,  Guatemala. 

The  Blue  Book  of  Guatemala,  1915.  Editor,  Col.  J.  Bascom  Jones. 
Searcy  &  Pfaff,  New  Orleans.     (1915).    406  pages. 

The  Travelers  Guide  in  the  Republic  of  Guatemala  (1909). 
Directorio  Nacional  de  Guatemala  (1908).  Pablo  Duchez,  Editor. 
Guatemala,  Tip  Nacional. 

McScott,  James.  Directorio  Comercial  de  la  Republica  de  Guate- 
mala (1909).  Eduardo  Aguirre  Velasquez  y  Cia.,  Guatemala.  $2.50 
U.  S.  gold. 

Honduras 

Guia  de  Honduras.  Somoza- Vivas  Barthold,  4  Stone  Street,  New 
York. 

Fletes,  Ernesto.  Commercial  Directory  of  Honduras  (1911).  Eor 
distribution  by  Pan-American  Union. 

Mexico 

Directorio  General  de  la  Ciudad  de  Mexico  (1913-14).  (Directorio 
Ruhland.)  De  venta  en  la  "Libreria  International"  Calle  Espiritu 
Santo  1-V2»  Mexico,  D.  F.    $10  Mex  cy.     Issued  alternate  years. 

Same  of  Mexican  States   (1913-14).     Issued  alternate  years. 

Official  Mining  Directory  of  Mexico  (1911).  English  and  Span- 
ish. John  R.  Southworth  and  Percy  G.  Holmes,  Apartado  23S1, 
Mexico. 

The  Acost  Directory  of  English-speaking  residents  of  Mexico 
(1910).  Apartado,  1102.  There  are  also  directories  of  the  larger 
cities. 

Romero,  Jose.  Guia  de  la  Ciudad  de  Mexico  (1910).  Libreria  de 
Porrua  Hermanos,  2a.    de  Relox,  Mexico,  D.  F. 

Nicaragua 

Commercial  Index  Western  Nicaragua,  issued  by  the  American 
Consulate  at  Managua,  in  the  interest  of  American  trade  extension. 

Guia  General  de  Nicaragua.  Daniel  S.  Melendez,  editor,  San  Sal- 
vador, Tip.     "La  Union"  Calle  Oriente  No.  4. 

Panama 

Commercial  Directory  of  the  Republic  of  Panama  (1912).  Ripo- 
graffa  "Diario  do  Panama." 


APPENDIX  503 

Guia  Directorio  de  la  Ciudad  de  Panama,  1906.  Panama  Tip. 
Chevalier,  Andreve  &  Cia. 

Guide  and  Business  Directory  of  Colon  and  Cristobal,  1908. 
Edited  by  E.  Clifford  Bynoe.  Colon.  "The  Independent,"  36  Avenue 
do  Paez,  Colon.     50  cents  gold. 

Panama  at  a  Glance.  Pocket  Guide  to  Panama  City.  Panama, 
the  Panama  Real  Estate  Co. 

Paraguay 

Guia  General  del  Paraguay,  1914.  Editor  Manuel  W.  Chaves. 
Asuncion,  Talleres  de  Tip  y  Enc.     "El  Pais,"  Ayolas  73. 

Peru 

Almanaque  de  "El  Comercio"  (1914).     Callo  Ayacucho  304,  Lima. 
Almanaque  de  "Mercurio"  (1908).     Trujillo,  Peru,  Progreso  54. 
Directorio  Annal  del  Peru   (1910).     Tomo  1,  Provincia  de  Lima 
y  El  Callao.    Imprenta  del  Estado,  Escuela  de  Artes  y  Oficion,  Lima. 

Philippines 

Rosenstock's  Manila  City  Directory.  (Name  given  by  Bureau  of 
Insular  Affairs.) 

Porto  Rico 

The  Pictorial  Guide  and  Business  Directory  of  Porto  Rico.  A 
commercial  guide  and  general  business  directory.  F.  E.  Piatt  &  Co., 
32  Bond  Street,  New  York.  (June  1,  1913.)  Fully  illustrated. 
English  and  Spanish. 

Salvador 

Guia  del  Salvador,  publicacion  semistral  del  comercio,  industrias, 
profesiones,  empresas  de  F.  C.  y  Vapores,  correos,  telegrafos,  tele- 
fonos,  etc.  Jose  M.  Lacayo  Tellez,  editor,  San  Salvador,  Tip.  "La 
Union"  Dutriz  Hnos.     25  cents  copy. 

Uruguay 

Almanaque.  Guia  del  Siglo,  Montevideo,  Uruguay.  Published  in 
October.  Circulation  12,000.  Complete  Directory  of  the  Republic. 
$1.55  gold  cloth.     $2.15  gold. 

Gran  Almanaque  de  "El  Siglo"  (1915).     Montevideo. 

See  also  under  Argentina,  first  directory. 

Guia  Nacional  (1912).  Montevideo.  $6.00  from  Felix  Rey  de 
Castro,   New   York. 


504  APPENDIX 

Yenezuela 

Guia  o  Directorio  Anual  de  Caracas  y  Venezuela  (1912-13).  Sue. 
del  Gral.  1.     Casa  Praag,  Caracas. 

GENERAL 

Anuario  del  Comercio  (1911).  Madrid,  Libreria  Editorial  de 
Bailliere  e  liijos,  Plaza  de  Santa  Ana  No.  10.  4  volumes.  Contains 
list  of  firms,  etc.,  in  Spain,  her  colonies  and  (Vol.  IV)  the  Latin 
American  Republics.  New  York  City  agent,  R.  L.  Polk  &  Co., 
Brunswick  Building,  225  Fifth  Avenue.     $10.00  gold. 

Business  Directory  of  manufacturers,  dealers,  exporters,  importers 
and  banks  and  bankers  of  New  Orleans,  La.,  and  British  Honduras, 
Guatemala,  El  Salvador,  Spanish  Honduras,  Nicaragua,  Costa  Rica 
and  Panama  (1908).     United  Fruit  Co.     [Classified.] 

Exporter's  Encyclopedia,  1915.  Complete  Export  Shipping  Guide. 
Contains  consular  charges  and*  list  of  S.S.  routes  and  companies. 

Kelly's  Directory  of  merchants,  manufacturers  and  shippers  and 
guide  to  the  export  and  import,  shipping  and  manufacturing  indus- 
tries of  the  world  (1914).  London.  Annual.  Kelly  Publishing  Co., 
5  Beekman  Street,  New  York  City. 

Official  Shippers'  Guide  of  the  Pacific  Mail  Steamship  Co.  (De- 
cember, 1907).  Contains  lists  of  bankers,  importers  and  exporters, 
commercial  firms,  and  populations  of  United  States,  Mexico,  and 
Central  America.  Distributed  gratis  to  importers  and  exporters 
throughout  countries  named.  Z.  D.  Dunn,  497  Pearl  Street,  New 
York,  compiler  and  publisher. 

Anuario  Comercial  de  la  Republica  Mexicana.  Commercial  Direc- 
tory of  Mexico.    $7.00. 

Anuario  de  la  America  Latina.  Commercial  Dictionary  of  Latin 
America.     $6.00. 

Directory  of  Latin  America.  A  classified  business  directory  of  all 
the  Latin  American  republics.  Universal  Publicity  Company,  45 
West  34th  Street,  New  York. 

Guia  Directorio  de  la  Isla  de  Cuba.     Directory  of  Cuba.     $3.00. 

TRADE  DIRECTORIES.     PUBLISHED  BY  BUREAU  OF   FOREIGN 
AND  DOMESTIC  COMMERCE,  WASHINGTON,  D.  C* 

Latin-American  Trade  Directory.     Price  $1.00. 
Supplement  to  Trade  Directory  of  South  America.     Free  to  the 
purchasers  of  the  Trade  Direc'^ory  of  South  America. 

Many   ot  the   foreign   directories  listed   above    may   be   obtained   from 
Fehx  Rey  de  Castro,  55  Broadway,  New  York  City. 


APPENDIX 


505 


Trade  Directory  of  South  America.  Miscellaneous  Series  No.  13 
(1914).  A  thorough  revision  of  the  South  American  section  of  the 
World's  Trade  Directory  with  uniform  classification  and  finding 
index.     Price  $1.00. 

Trade  Directory  of  West  Indies  and  Central  America.  Miscel- 
laneous Series  No.  22' (1915).    Price  60  cents. 

World's  Trade  Directory.  Price  $5.00.  Large  volume,  very  com- 
plete. 


BANKS,  BANKING  HOUSES  AND  FOKEIGN  EXCHANGE 
BROKEKS  IN  NEW  YORK  CITY 

Below  is  given  a  list  of  the  principal  financial  institutions  which 
are  particularly  interested  in  the  purchase  of  bills  of  foreign  ex- 
change. Through  these  institutions  may  also  be  collected  or  nego- 
tiated drafts  and  documents  in  Latin  American  countries.  In  some 
instances  banks  have  better  facilities  in  one  country  than  in  others 
for  the  transaction  of  business,  but  those  listed  have,  generally  speak- 
ing, excellent  connections  in  the  Latin  American  countries. 


^tna  National  Bank,  Greenwich 

and  Warren  streets 
American  Express  Co.,  65  Broad- 
way 
Amsinck    &    Co.,    6-9     Hanover 

Street 
Anglo-South      American     Bank, 

Ltd.,  60  Wall  Street 
Banco  Nacional  de  Cuba,  1  Wall 

Street 
Bank  of  America,  The,  44  Wall 

Street 
Bank  of  British  North  America, 

52    Wall   Street 
Bank  of  Montreal,  64  Wall  Street 
Bank    of    New    York,    48    Wall 

Street 
Bank   of   Nova   Scotia,   48    Wall 

Street 
Battery     Park     National     Bank, 

Produce  Exchange,  New  York 


Bankers     Trust     Co.,     16     Wall 

Street 
Belmont,  Aug.,  &  Co.,  23  Nassau 

Street 
Bigelow  &  Co.,  49  Wall  Street 
Blair  &  Co.,  24  Broad  Street 
Bolognesi,  A.,  &  Co.,  23  Nassau 

Street 
Brown    Bros.    &    Co.,    59    Wall 

Street 
Canadian  Bank  of  Commerce,  16 

Exchange  Place 
Chartered  Bank   of   India,   Aus- 
tralia    and     China,     88     Wall 

Street 
Chase  National  Bank,  83  Cedar 

Street 
Commercial      Bank      of      South 

America,  Ltd.,  20  Broad  Street 
Corn    Exchange    Bank,    William 

and  Beaver  streets 


506 


APPENDIX 


Fisk   &   Robinson,   26   Exchange 

Place 
Flint  &  Co.,  25  Broad  Street 
Fourth  National  Bank,  14  Nassau 

Street 
Frazier,  Chas.,  &  Co.,  93  Nassau 

Street 
Gallatin  National  Bank,  36  Wall 

Street 
Greenwich    Bank,    402     Hudson 

Street. 
Guaranty  Trust  Co.,  140  Broad- 
way 
Hallgarten     &     Co.,     5     Nassau 

Street 
Hanover    National    Bank,    Pine 

and  Nassau  streets 
Heidelbach,    Ickelheimer    &    Co., 

49  Wall  Street 
Hollins,  H.  B.,  &  Co.,  15  WaU 

Street 
Holzman     Bros.,     26     Exchange 

Place 
International   Banking   Corpora- 
tion, 60  Wall  Street 
Irving    National    Bank,    92    W. 

Broadway 
Knauth,    Nachod    &    Kuhne,    13 

William  Street 
Koenig  Bros.  &  Co.,  16  Exchange 

Place 
Ladenburg,  Thalmann  &  Co.,  25 

Broad  Street 
Laidlaw  &  Co.,  26  Broadway 
Lazard  Frercs,  10  Wall  Street 
London    &    Brazilian    Bank,    92 

Beaver  Street 
London  &  River  Plate  Bank,  Ltd., 

92  Beaver  Street 
Maekay  &  Co.,  55  Wall  Street 
Maitland,  Coppell  &  Co.,  52  Wil- 
liam  Street 
Manhattan  Co.,  40  Wall  Street 


Merchants     Exchange     National 

Bank,  257  Broadway 
Morgan,  J.   P.,  &   Co.,  23  Wall 

Street 
Mosle  Bros.,  16  Exchange  Place 
Muller,    Schall    &    Co.,    44    Wall 

Street 
Munroe,   John,   &   Co.,    30   Pine 

Street 
National  Bank  of  Commerce,  31 

Nassau  Street 
National  Bank  of  Cuba,  1  Wall 

Street 
National  Bank  of  North  Amer- 
ica, 25  Broad  Street 
National    City    Bank,    The,    55 

Wall  Street 
National  Nassau   Bank  of  New 

York,  7  Beekman  Street 
National  Bank  of  Nicaragua,  59 

Wall  Street 
National  Park  Bank,  214  Broad- 
way 
National     Reserve     Bank,      165 

Broadway 
Panama     Banking     Corporation, 

17  Battery  Place 
Perera,  Lionello  &  Co.,  69  Wall 

Street 
Redmond  &  Co.,  33  Pine  Street 
Richard,    C.    B.,    &    Co.,    31-33 

Broadway 
Sielcken,      Herman,      90      Wall 

Street 
Seligman     &     Co.,     1     William 

Street 
Speyer      &      Co.,      24-26      Pine 

Street 
Turnure  &  Co..  64  Wall  Street 
United  States  Mortgage  &  Trust 

Company,   55   Cedar  Street 
Zinnnerniann     &     Forshay,     9-11 

Wall  Street 


APPENDIX 


5or 


PEINCIPAL  BANKS   OF   THE   LARGE  LATIN  AMERICAN 

CITIES 


ARGENTINA 


Buenos  Aires 
Bando  de  la  Nacion  Argentina 
London    &    River    Plate    Bank, 

Limited 
British  Bank  of  South  America, 

Limited 
London  &  Brazilian  Bank,  Lim- 
ited 
Banco  Anglo  Sud  Americano 
Banco  Aleman  Transatlantico 
Bando  Germanico  de  la  America 

del  Sud 
Branch    of    the    National    City 
Bank  of  New  York 


Banco  de  la  Provincia  de  Buenos 
Aires  '• 

Banco  Credito  Popular 

Banco  Espanol  del  Rio  de  la 
Plata 

Banco  Frances  e  Italiano  para 
America  del  Sud 

Banque  Francaise  pour  le  Com- 
merce et  rindustrie,  Buenos 
Aires 

Banco  Popular  Argentine 


BOLIVIA 


La  Paz 
Banco  Nacional  de  Bolivia 
Banco  Francisco  Argandona 
Banco  Aleman  Transatlantico 
Banco  de  la  Nacion  Boliviana 
Banco  Mercantil 


W.  R.  Grace  y  Cia. 

Branco  Chile-Alemania,  Oruro 

Anglo     South    American    Bank, 

Limited,  Oruro 
Banco  Industrial 


BRAZIL 


Rio  de  Janeiro 

Banco  do  Brazil 

Banco  Nacional  Brazileiro 

Brasiliansche  Bank  fur  Deutsch- 
land 

London  &  Brazilian  Bank,  Lim- 
ited 

London  &  River  Plate  Bank,  Lim- 
ited 

British  Bank  of  South  America, 
Limited 

Branch  of  the  National  City 
Bank  of  New  York 

Banco  Espanol  del  Rio  de  la 
Plata 


Banco  Anglo-Sud-Americano 
Banco    Commercial    do    Rio 
Janeiro 

Commercio 


de 


Rio     de 


Banco     do 

Janeiro 
Banco    do 

Janeiro 
Banco     Mercantil 

Janeiro 
Banco  Nacional  Ultramariho 
Banco  Francesca  e  Italiana  per 

L' America  del  Sud 


Estada     do    Rio     de 


do     Rio     de 


508 


APPENDIX 


CHILE 


Santiago 
Banco  de  Chile 
Banco  de  Santiago 
Banco  Aleman  Transatlantico 
Banco  Nacional 
Banco  Comercial  de  Chile 
Banco  Espanol 
Banco  de  Chile  y  Alemania 


Banco  Anglo-Sud-Americano 

Edwards  y  Compania 

Bauer  Germanier  de  la  America 

del  Slid 
London    &    River    Plate    Bank, 

Valparaiso 


All  the  principal  hanks  have  branches  in  the  important  cities  of 
the  republic. 

COLOMBIA 


Bogota 
Banco  de  Bogota 
Banco  de  Colombia 
Banco  del  Comercio 
Banco   Central 
C.   Schloss  y  Cia. 

Medellin 
Restrepo  y  Cia. 
Banco  Aleman-Antioqueno 


Cartagena 
Banco  de  Bolivar 
Banco  de  Cartagena 
Banco  Industrial 
Pombo  Mermanos 

BarrariquUla 
Banco  Comercial  de  Barranquilla 
Alzamora  Palacio  y  Cia. 


COSTA  RICA 


San  Jose 
Banco  Anglo  Costaricense 
Banco  Comercial 
Banco  Internacional 
Banco  Mercantil 


Banco  de  Costa  Rica 

Banco  Comercial  de  Costa  Rica, 

Limon 
Felipe  J.  Alvarado  y  Cia.,  Limon 


CUBA 


Hah  ana 

Banco  de  Cuba 

Banco  Nacional  de  Cuba 

Bank  of  Nova  Scotia 

Fidelity  &  Deposit  Co.  of  Mary- 
land 


La  Nacional 

The   Royal   Bank   of  Canada 
The  Trust  Co.  of  Cuba 
Banco  de  la  Habana 


APPENDIX  509 

DOMINICAN  REPUBLIC 

Santo  Domingo 
Banco    Nacional    de    Santo    Do-      Eicart  Bierdemann  &  Co. 
mingo  S.  Michelena,  Santo  Domingo 


ECUADOR 

Guayaquil 
Banco  Comercial  y  Agricola  Banco  Alvarado  y  Bejarano 

Banco  del  Ecuador  Quito 

Banco  Territorial  Banco  de  Pichincha 


GUATEMALA 

Guatemala  City 
Banco  Americana  de  Guatemala       Banco  Internacional 
Banco  de  Guatemala 

HAITI 

Port  an  Prince 
Banque  Nationale  d'Haiti  Robert  Dutton  &  Co. 

F.  Herman  &  Co.  Otto  Bieber  &  Company 


HONDURAS 

Tegucigalpa 

Banco  de  Honduras  Banco  Atlantida 

Daniel  Fortin  Banco  de  Comercio 

La  Ceiha  Eicardo  Streber 


MEXICO 

Mexico  City 

Banco  Germanico  de  la  America  Banco  Peninsular  Mexic?np,  Me- 

del  Sur  rida 

International   Banking   Corpora-  Banco   de   Nuevo   Leon    Monter- 

tion  rey 

Banco  de  Londres  y  Mexico  Banco  de  Durango,  Durango 

Banco  de  Montreal  The  American  Bank  of  Torreon, 

Banco  Nacional  de  Mexico  Torreon 
United  States  and  Mexican  Trust 

Co. 


510 


APPENDIX 


Managua 
Francisco  Breckmann 
A.  J.  Martin 
Munkel-Muller  &  Co. 


NICARAGUA 


Cortes  Commercial  and  Banking 

Company 
Banco  Comercial 
Banco  Nacional  de  Nicaragua 


PANAMA 


International   Banking   Corpora- 
tion, Panama 


American  Trade  Developing  Co., 

Panama 
Panama  Banking  Co. 


Asuncion 
Banco  Agricola 
Banco  Mercantil 


PARAGUAY 

Banco  Paraguayo 


PERU 


Lima 
Banco  Aleman  Transatlantic© 
Banco  del  Peru  y  Londres 
Banco  Internacional  del  Peru 


W.  K.  Grace  &  Company 
Banco  Popular 


SALVADOR 

San  Salvador 
Banco  Agricola 
Banco  Nacional  del  Salvador 


Banco  Occidental 


URUGUAY 


Montevidio 
Banco  de  la  Republica 
Banco  Popular  del  Uruguay 
Banco  Comercial 
Banco  Espanol 
Banco  Frances 
Banco  Aleman  Transatlantico 


Banco   Britanico   de  la   America 

del  Sud 
Banco  Anglo  Sud- Americano 
Banco  Londres  y  Rio  de  la  Plata 
London  &  Brazilian  Bank,  Lim- 
ited 


VENEZUELA 


Caracas 
Banco  de  Venezuela 
Banco  d9  Carac9?> 


II.  L.   Bolton  y  Cia. 
Blolim  y  Cia.,  Lu  Guayra 


APPENDIX 


511 


LATIN  AMERICAN   MONETARY  UNITS   WITH  APPROXI- 
MATE VALUES  IN  UNITED  STATES  GOLD  DOLLAR 


Country 

Standard 

Monetary  Unit 

Value  in  Term.'s 

of  U.  S. 

Gold  Dollar 

Argentine  Republic 

Gold 

Peso 

Boliviano 

Milreis 

Colon 

Peso 

Peso 

Peso 

Peso 

Peso 

Dollar 

Peso 

Sucre 

Gourde 

Dollar  (Peso)  . 

Balboa 

Libra  

DoUar 

Peso 

Bolivar 

$0  965 

Bolivia 

Gold  .    .      .  . 

39 

Brazil 

Gold  .    . 

546 

Costa  Rica 

Gold 

465 

Guatemala 

Honduras        .... 

Silver 

Silver 

Silver 

Silver 

Gold 

Gold 

Gold 

.403 
403 

Nicaragua 

403 

Salvador 

403 

Chile 

365 

Colombia 

Cuba 

1.000 
926 

Ecuador 

Haiti 

Gold 

Gold 

Gold 

Gold 

Gold 

.487 
965 

Mexico 

Panama 

.498 
1  000 

Peru 

4.866M 
1.000 
1.034 
.193 

Santo  Domingo 

Uruguay 

Venezuela 

Gold 

Gold 

Gold 

DISTANCES    TO   PRINCIPAL   LATIN   AMERICAN   CITIES   IN   NAU- 
TICAL   MILES,    BASED    ON    THE    MOST    DIRECT    PRACTICABLE 
ROUTE    FROM    THE    BATTERY,    NEW    YORK    CITY. 


Miles 

To  Puerto  Mexico 1,944 

"  Habana 1,186 

"   Pernambuco 3,698 

"  Rio  de  Janeiro 4,770 

"  Buenos  Aires 5,871 

"  Las  Palmas 2,965 


Miles 

To  San  Juan  (P.  R.) 1,407 

"  Barbados 1,829 

"  Bahia 4,089 

"   Montevideo 5,757 

"  Punta  Arenas 6,947 


612 


A^PENDI^ 


LIST  OF  LATIN  AMERICAN  COINS  WITH  EQUIVALENTS 
IN  AMERICAN  CURRENCY  AT  PAR  VALUE 


Denominations 

Where  Used 

u.  s. 

Equivalents 
at  Par 

Bolivar 

Venezuela 

Bolivia 

Argentine  Republic 

Bolivia 

Chile . 

Colombia 

Ecuador 

Guatemala 

Haiti 

Honduras 

Mexico 

Nicaragua 

Paraguay 

Peru 

Salvador 

Santo  Domingo 

$0    193 

Boliviano 

0.428 

Centavo 

0 . 0096 

Centavo 

0  0042 

Centavo 

Centavo . 

Centavo 

0.0036 
0.0042 
0.0048 

Centavo 

0  0097 

Centavo 

0 . 0096 

Centavo 

0.01 

Centavo 

0 . 0046 

Centavo 

0  004 

Centavo 

0 . 0099 

Centavo 

0 . 0048 

Centavo 

0  0097 

0  01 

Centavo 

Uruguay 

0  01034 

Venezuela 

0 . 0096 

Centimo 

Costa  Rica 

0  0046 

Costa  Rica 

0  465 

Dollar  or  Peso 

Argentine  Republic 

Chile 

0.965 

Dollar  or  Peso 

0.365 

Dollar  or  Peso 

Colombia 

0.428 

Guatemala 

0  972 

Dollar 

Honduras 

1  00 

Dollar 

Mexico 

0.464 

Dollar 

Nicaragua 

0  40 

Dollar  or  Peso 

Paraguay 

0  998 

Dollar  or  Sol 

Peru 

0.487 

Dollar 

Salvador 

0.972 

Dollar . 

Santo  Domingo 

1.00 

Uruguay 

1  034 

Gourde 

Haiti 

0.965 

Brazil 

0.546 

Peseta  

Cuba 

0.185 

Porto  Rico 

0.185 

Peso  or  Dollar 

Argentine  Republic 

Chile 

0.965 

0 .  365 

Peso  or  Dollar 

Colombia 

0.428 

Cuba 

0.926 

Peso,  Piastre,  or  Dollar 

Guatemala 

0 .  972 

Paraguay 

0.998 

Peso 

Porto  Rico 

0  926 

Uruguay 

1.034 

Peso  or  Venezolano 

Venezuela 

0 .  965 

Guatemala 

0.972 

Rei,  (plural)  Reis 

Brazil 

0 . 00054 

Peru 

0.487 

Sucre 

Ecuado 

0.487 

Venezuela 

0.965 

APPENDIX  513 

EMBASSIES  AND  LEGATIONS   OF  THE  UNITED  STATES 
TO   THE   LATIN  AMEEICAN   EEPUBLICS 

*  AMBASSADORS  EXTRAORDINARY  AND  PLENIPOTENTIARY 

Argentine  Republic Frederic  J.  Stimson,  Buenos  Aires 

Brazil    Edwin  V.  Morgan,  Rio  de  Janeiro 

Chile    Joseph  H.  Shea,  Santiago 

Mexico Henry  P.  Fletcher,  Mexico  City 

ENVOYS  EXTRAORDINARY  AND  MINISTERS 
PLENIPOTENTIARY 

Bolivia John  D.  O'Rear,  La  Paz 

Colombia Thaddeus  A.  Thomson,  Bogota 

Costa  Rica Edward  J.  Hale,  San  Jose 

Cuba    William  E.  Gonzales,  Habana 

Dominican  Republic W.  W.  Russell,  Santo  Domingo 

Ecuador Charles  S.  Hartman,  Quito 

Guatemala    William  H.  Leavell,  Guatemala  City 

Haiti    A.  Bailly-Blanchard,  Port  au  Prince 

Honduras    John  Ewing,  Tegucigalpa 

Nicaragua Benjamin  L.  Jefferson,  Managua 

Panama William  J.  Price,  Panama 

Paraguay    Daniel  F.  Mooney,  Asuncion 

Peru Benton  McMillin,  Lima 

Uruguay   Robert  E.  Jeffery,  Montevideo 

Venezuela  Preston  McGoodwin,  Caracas 

CHARGE  D'AFFAIRES 
Salvador   Henry  F,  Tennant,  San  Salvador 

EMBASSIES    AND    LEGATIONS    OF    THE    LATIN    AMER- 
ICAN REPUBLICS   TO   THE   UNITED    STATES 

AMBASSADORS  EXTRAORDINARY  AND  PLENIPOTENTIARY 

Argentine  Republic Seiior  Dr.  Romulo  S.  Naon 

Office  of  Embassy,  1806  Corcoran  Street,  Washington,  D.  C. 
Brazil    Senhor  Domicio  da  Gama 

Office  of  Embassy,  1780  Massachusetts  Avenue,  Washington,  D.  C. 
Chile    Senor  Don  Eduardo  Suarez  Mujica 

Office  of  Embassy,  1013  Sixteenth  Street,  Washington,  D.  C. 
Mexico     Seiior  Don  Eliseo  Arredondo 

Office  of  Embassy,  22  Jackson  Place,  Washington,  D.  C. 


514  APPENDIX 

ENVOYS  EXTRAORDINARY  AND  MINISTERS 
PLENIPOTENTIARY 

Bolivia    Sefior  Don  Ignacio  Cakleron 

Office  of  Legation,  1633  Sixteenth  Street,  Washington,  D.  C. 
Colombia     Seiior  Dr.  Julio  Betancourt 

Office  of  Legation,  1319  K  Street,  Washington,  D.  C. 
Costa  Rica Seiior  Don  Manuel  Castro  Quesada 

Office  of  Legation,  1501  Sixteenth  Street,  Washington,  D.  C. 
Cuba Seiior  Dr.  C.  M.  de  Cespedes 

Office  of  Legation,  1529  Eighteenth  Street,  Washington,  D.  C. 
Dominican  Republic   Sefior  Dr.  A.  Perez  Perdomo 

Office  of  Legation,  The  Champlain,  Wasliington,  D.  C. 
Ecuador Seiior  Dr.  Gonzalo  S.  Cordova 

Office  of  Legation,  604  Riverside  Drive,  New  York  City- 
Guatemala    Seiior  Don  Joaquin  Mendez 

Office  of  Legation,  1604  K  Street,  Washington,  D.  C. 
Haiti    M.  Solon  Menos 

Office  of  Legation,  1429  Rhode  Island  Avenue,  Washington,  D.  C. 
Honduras    Seiior  Dr.  Alberto  Membreno 

Office  of  Legation,  31  Broadway,  New  York 
Nicaragua Seiior  Don  Emiliano  Chamorro 

Office  of  Legation,  Stoneleigh  Court,  Washington,  D.  C. 
Panama Seiior  Dr.  Eusebio  A.  Morales 

Office  of  Legation,  Stoneleigh  Court,  Washington,  D.  C. 
Paraguay    Seiior  Dr.  Hector  Velaquez 

Office  of  Legation,  1678  Woolworth  Building,  New  York,  N.  Y. 
Peru Seiior  Don  Federico  Alfonso  Pezet 

Office  of  Legation,  2223  R  Street,  Washington,  D.  C. 
Salvador   Seiior  Dr.  Rafael  Zaldivar 

Office  of  Legation,  1800  Connecticut  Avenue,  Washington,  D.  C. 
Uruguay   Seiior  Dr.  Carlos  M.  de  Pena 

Office  of  Legation,  1734  N  Street,  Washington,  D.  C. 
Venezuela  Seiior  Dr.  Santos  A.  Dominici 

Office  of  Legation,  1406  Massachusetts  Avenue,  Washington,  D.  C. 

CHARGES  D'AFFAIRES 

Argentina Sefior  Don  Federico  M.  Quintana 

Office  of  Embassy,  1806  Corcoran  Street,  Washington,  D.  C. 

Honduras    Sefior  Don  R.  Camilo  Diaz 

Office  of  Legation,  31  Broadway,  New  York,  N.  Y. 


APPENDIX  515 

PEESIDENTS    OF    THE    LATIN    AMEEICAN    REPUBLICS 
AND  TERMS  OF  OFFICE 

Argentina. —  Term,  6  years — from  Oct.  12. 

Dr.  Hipolito  Irigoyeu— 1916-1922. 
Bolivia. —  Term,    4    years. 

Ismael  Montes — Vice-President  until  Aug.  9, 1914. 
Brazil. —  Term,  4  years. 

Dr.  Wenceslau  Braz— Term,  Nov.  15,  1914-1917. 
Chile. — Term,  5  years. 

Juan  Luis  Fuentes— 1915-1920. 
CoZomfei'a.— Term,  4  years. 

Jose  Vicente  Concha — Aug.  7,  1914- Aug.  7,  1918. 
Costa  Rica. —  Term,  4  years. 

Alfredo  Gonzalez— May  8,  1914-May  8,  1918. 
Cuba. — -Term,  4  years. 

General    Mario    G.    Menocal — May    20,    1913-May 
20,  1917. 
Ecuador. —  Term,  4  years. 

Francisco  Balasquier  Moreno — 1916-1920. 
Guatemala. —  Term,  6  years. 

Manuel  Estrada  Cabrera— 1911-1917. 
Haiti. —  Term,  7  years. 

General  Orestes  Zamor— 1914-1921. 
Honduras. —  Term,  4  years. 

Dr.  Alberto  Membreno— 1915-1919. 
Mexico. —  Term,  6  years. 

Provisional  President  General  V.  Carranza — 1915-. 
Nicaragua. — Term,  4  years. 

Adolfo  Diaz— May  11,  1912-Dec.  31,  1916. 
Panama. — Term,  4  years. 

Dr.  Belisario  Porras— 1912-1916. 
Paraguay. — Term,  4  years. 

Eduardo  Scherer— August  15,  1912-1916. 
Peru. —  Term,  4  years. 

Dr.  Jose  Pardo— 1915-1919. 
Salvador. — Term,  4  years. 

Carlos  Melendez— March  1,  1915-1919. 
Santo  Domingo. — Term,  6  years. 

Juan  Isidro  Jimenez — Dec.  5,  1914-1919. 
Uruguay. — Term,  4  years. 

Dr.  Feliciano  Viera— March  1,  1915-1919. 
Venezuela. —  Term,  7  years. 

Juan  Vicente  Gomez — Elected  April  19,  1914. 


il6 


AI>PENDIX 


FOEEIGN  FEEIGHT  FOKWARDEKS  IN  NEW  YORK 


Adams  Express  Co.,  61  Broad- 
way 

American  Express  Company.,  65 
Broadway 

American  Shipping  Co.,  29 
Broadway 

D.  C.  Andrews  &  Co.,  27-29  Wa- 
ter Street 

Austin  Baldwin  &  Co.,  Inc.,  116 
Broad  Street 

Hardy  M.  Banks,  15  Whitehall 
Street 

Black  &  Geddes,  Produce  Ex- 
change Bldg. 

Adolf  Blum  &  Popper,  68  Broad 
Street 

Bowling  Green  Storage  &  Van 
Co.,  18  Broadway 

Brasch  &  Rothenstein,  Inc.,  32 
Broadway 

Byrnes  &  Lowery,  2-4  Stone 
Street 

Caldwell  &  Co.,  26  Broadway 

J.  J.  Cocarro,  1  Broadway 

Columbia  Shipping  Co.,  17  Bat- 
tery Place 

Cuban  &  Pan-American  Express 
Co.,  42  Broadway 

Davies,  Turner  &  Co.,  39  Pearl 
Street 

T.  D.  Downing  &  Co.,  1  Broad- 
way, New  York 

Bowning's  Foreign  Express,  45 
Pearl  Street 

Arthur  C.  Elliott,  16  Beaver 
Street 

Eytinge  &  Co.,  Inc.,  116  Broad 
Street 

Charles  Friedenberg,  17  State 
Street 

J.  Friedenberg  &  Co.;  2^  State 
Street 


Gerhard  &  Hey,  24  State  Street 

J.  W.  Hampton,  Jr.,  &  Co.,  17 
Battery  Place 

Hensel,  Bruckmann  &  Lorbacher, 
29  Broadway 

Justus  Herwig,  Jr.,  32  Broad- 
way, New  York 

Dietrich  Heydemann,  17  Battery 
Place 

L.  S.  Holtzoff  &  Co.,  19  Broad- 
way 

International  Freight  Bureau,  24 
State  Street 

International  Shipping  Company, 
17  Stone  Street 

Jacob  &  Valentin,  15  Whitehall 
Street 

Judson  Freight  Fdg.  Co.,  17  Bat- 
tery Place 

Vincent  Loeser  Co.,  228  Produce 
Exchange  Bldg. 

Lunham  &  Moore,  Produce  Ex- 
change Bldg. 

Thomas  Meadows  &  Co.,  Inc.,  8- 
10  Bridge  Street 

Michelson  &  Sternberg,  116  Broad 
Street 

Morris  European  &  American 
Express  Company,  Limited,  53 
Broadway 

Munn  &  Jenkins,  Inc.,  434  Pro- 
duce Exchange  Bldg. 

Alexander  Murphy  &  Co.,  22 
State  Street 

Oelrich's  &  Co.,  31  Water  Street 

Panama  &  South  American  Ex- 
press Co.,  122-124  East  25th 
Street 

Pan-American  Express  Co.,  122- 
124  East  25th  St. 

Charles  H.  Pattengill,  80  South 
Street 


APPENDIX 


Sir 


A.  T.  Paul  &  Co.,  Inc.,  70  Wall 
Street 

Pitt  &  Scott,  Ltd.,  CO  Pearl  Street 

Porto-Rican  Express  Co.,  37  Bat- 
tery Place 

Alfred  H.  Post  &  Co.,  116  Broad 
Street 

C.  B.  Richard  &  Co.,  31  Broad- 
way 

A.  H.  Ringk  &  Co.,  2  Stone 
Street 

C.  F.  Rundspaden  &  Co.,  17  Bat- 
tery Place 

H.  W.  St.  John  &  Co.,  37  Pearl 
Street 

Schenker  &  Co.,  17  Battery  Place 

G.  W.  Sellers,  15  Whitehall  Street 

G.  W.  Sheldon  &  Co.,  24  State 
Street 

W.  O.  Smith  &  Co.,  26  White- 
hall Street 


Snow's  U.  S.  Sample  Express 
Co.,  Ltd.,  17  Battery  Place 

Joseph  Spiero  &.  Co.,  17  Battery 
Place 

Transatlantic  Shipping  Company, 
l7   Stone  Street 

Unkart  Travis  &  Co.,  Inc.,  2-4 
Stone  Street 

F.  B.  Vandergrift  &  Co.,  15-25 
Whitehall  Street 

F.  E.  Wallace  &  Co.,  203  Broad- 
way 

Wells-Fargo  &  Co.,  51  Broadway 

Williams  Shipping  Agency,  Inc., 
24-26  Stone  Street 

Williams  &  Terhune,  18  Broad- 
way 

J.  H.  Winchester  &  Co.,  Produce 
Exchange  Bldg. 

Young  &  Glenn,  Inc.,  68  Broad 
Street 


STEAMSHIP  LINES  TO  LATIN  AMERICAN  REPUBLICS 


Argentine  Republic. — From  New  York :  American  &  Rio  Plata  Line, 
Barber  Line,  Houston  Line,   Lamport  &  Holt  Line,   Norton 
Line,  Prince  Line. 
From  Mobile :  Munson  Line. 
From    New   Orleans :    Pan-American-Argentine    Line,    Houston 

Line. 
From  San  Francisco :  Kosmos  Line,  Harrison  Direct  Line. 
From  Puget  Sound :  Kosmos  Line. 
Bolivia. — Has   no   seaport.     May   be   reached   by   lines   touching   at 
Chilean   and  Peruvian  ports,   from  which   railway  lines   lead 
into  Bolivia. 
Brazil. — From  New  York:  Booth  Line,  Hamburg  So.  Am.  S.S.  Line, 
Lamport  and  Holt  Line,  Lloyd  Brazileiro  Line,  Norton  Line, 
Prince  Line,  U.  S.  &  Brazil  Line. 
From  Philadelphia :  U.  S.  &  Brazil  Line. 
British  Honduras. — From  New  York :  United  Fruit  Co.  Line. 
From  Mobile :  Orr-Laubenheimer  Line. 
From  New  Orleans:  United  Fruit  Co.  Line. 


518  APPENDIX 

Ch  He. — From  New  York :  Merchants'  Line,  New  York  and  So.  Am. 
Line,  West  Coast  Line. 

From  San  Francisco :  Atlantic  &  Pacific  Line,  Kosnios  Line. 

From  Portland,  Ore. :  Atlantic  &  Pacific  Line. 

From  Seattle:  Kosmos  Line,  N.  Y.  &  Pacific  S.S.  Line. 

Transshipment  Routes :  Via.  all  lines  reaching  Panama  or  Colon 
connecting  with  Panama  Canal  services  to  the  west  coast  of 
South  America. 
Colombia. — From  New  York :  Hamburg- American  Atlas  Line,  Royal 
Mail  S.  P.  Line,  United  Fruit  Co.  Line. 

From  Mobile :  Seeberg  S.S.  Line. 

From  Port  Arthur :  Seeberg  S.S.  Line. 

Transshipment  Routes :   By   all  lines  reaching   Colon  or  trans- 
shipping through  the  Panama  Canal. 
Costa    Rica. — From    New    York :    Hamburg- American    Atlas    Line, 
United  Fruit  Co.  Line. 

From  Boston:  United  Fruit  Co.  Line. 

From  Mobile:  United  Fruit  Co.  Line. 

From  New  Orleans :  United  Fruit  Co.  Line. 

From  Pacific  Coast  Ports :  Atlantic  &  Pacific  Line,  Kosmos  Line. 

Transshipment  Routes :  By  all  lines  reaching  Colon  or  trans- 
shipping through  the  Panama  Canal. 
Cuba. — From  New  York :  American  &  Cuban  Line,  Benner  Line 
(sailers),  Compania  Transatlantica  Line,  Hamburg- American 
Atlas  Line,  Munson  Line,  New  York  &  Cuba  S.S.  Line,  Royal 
Mail  S.  P.  Line,  United  Fruit  Co.  Line. 

From  Boston :  Havana  Line,  United  Fruit  Co.  Line. 

From  Baltimore:  Munson  Line. 

From  Mobile:  Munson  Line. 

From   New   Orleans :    Southern   Pacific   S.S.   Line,  United   S.S. 
Line. 

From  Galveston :  United  S.S.  Line. 
Dominican  Republic. — From  New  York :   Clyde  Line,  Donald  Line. 

From  Mobile:  Seeberg  Line. 

From  New  Orleans :  Seeberg  Line,  United  S.S.  Line. 

From  Galveston:. United  S.S.  Line. 

From  Port  Arthur:  Seeberg  Line. 
Ecuador. — From  New  York:  Merchants'  Line. 

From  San  Francisco:  Atlantic  &  Pacific  S.S.  Line,  Kosmos  Line. 

From  Portland,  Ore. :  Atlantic  &  Pacific  S.S.  Line. 

From  Puget  Sound :  Kosmos  Line,  N.  Y.  &  Pacific  S.S.  Line. 

Transshipment  Routes:  Reached  by  lines  to  Colon  and  Panama. 
Guatemala. — From  New  York :  United  Fruit  Co.  Line. 


APPENDIX  519 

From  Mobile:  Orr-Laubenheimer  Line,  TInited  Fruit  Co.  Line. 

From  New  Orleans :  United  Fruit  Co.  Line. 

From  Galveston :  United  Fruit  Co.  Line. 

From  San  Francisco :  Atlantic  &  Pacific  Line,  Kosmos  Line,  Pa- 
cific Mail  Line. 

From  Portland,  Ore. :  Atlantic  &  Pacific  Line. 

From  Puget  Sound :  Kosmos  Line,  N.  Y.  &  Pacific  Line. 

Transshipment  Routes :  Reached  by  lines  transshipping  at  Colon 
or  Panama. 
Haiti. — From    New    York:    Hamburg-American    Atlas    Line,    Royal 
Dutch  W.  I.  Mail  Line. 

From  Mobile :  Seeberg  Line. 

From  New  Orleans :  Seeberg  Line,  United  S.S.  Line. 

From  Galveston :  United  S.S.  Line. 

From  Port  Arthur:  Seeberg  Line. 
Honduras. — From  New  York :  United  Fruit  Co.  Line. 

From  Mobile :  Orr-Laubenheimer  Line,  United  Fruit  Co.  Line. 

From  New  Orleans :  Hubbard-Zemurray  Line,  Independent  Line, 
United  Fruit  Co.  Line. 

From   San   Francisco :   Atlantic  &   Pacific   Line,   Kosmos   Line, 
Pacific  Mail  Line. 

From  Portland,  Ore. :  Atlantic  &  Pacific  Line. 

From  Puget  Sound :  Kosmos  Line,  New  York  &  Pacific  Line. 

Transshipment  Routes :  Reached  by  lines  transshipping  at  Colon 
or  Panama. 
Mexico. — From  New  York :  American  &  Cuban  Line,  N.  Y.  &  Cuba 
Mail  Line,  Campania  Transatlantica  Line. 

From  Newport  News :  Norway-Mexico  Gulf  Line. 

From  Mobile:  Atlantic  &  Mexican  Gulf  Line. 

From  New  Orleans :  Atlantic  Fruit  Co.  Line,  Atlantic  &  Mexi- 
can Gulf  Line,  Montes  S.S.  Line,  Wolvin  Line. 

From  Texas  City:  Wolvin  Line. 

From  San  Francisco:  Jesben.Line,  Kosmos  Line,  Pacific  Mail 
Line. 

From  Puget  Sound :  Kosmos  Line. 

Transshipment  Routes:  Via  Lines  reaching  Colon  or  Panama. 
Freight  may  also  be  shipped  by  railroads  via  El  Paso,  Eagle 
Pass,  Laredo,  or  Nogales. 
Nicaragua. — From    New    Orleans :    Atlantic    Fruit    Co.    Line,    Blue- 
fields  Fruit  Co.  Line. 

From  San  Francisco:  Atlantic  &  Pacific  Line,  Kosmos  Line,  Pa- 
cific Mail  Line. 

From -Portland,  Ore.:  Atlantic  &,  Pacific  Line. 


520  APPENDIX 

From  Puget  Sound:  Kosmos  Line,  N.  Y.  &  Pacific  Line. 
Transshipment  Routes :  Peached  by  lines  transshipping  at  Colon 

or  Panama. 
Panama. — From  New  York :  Hamburg- American  Atlas  Line,  Panama 

E.R.  S.S.  Line,  Royal  Mail  S.  P.  Line,  United  Fruit  Co.  Line. 
From  Mobile :  Seeberg  Line,  United  Fruit  Co.  Line. 
From  New  Orleans:  Seeberg  Line,  United  Fruit  Co.  Line. 
From  Galveston :  United  Fruit  Co.  Line. 

From  San  Francisco :  Atlantic  &  Pacific  Line,  Kosmos  Line,  Pa- 
cific Mail  Line. 
From  Portland,  Ore. :  Atlantic  &  Pacific  Line. 
From  Puget  Sound :  Kosmos  Line,  N.  Y.  &  Pacific  Line. 
Paraguay. — No    direct    lines.      All    lines    reaching    Montevideo    or 

Buenos  Aires  transship  at  those  ports  for  points  in  Paraguay. 
Peru. — From  New  York :  Merchants'  Line,  N.  Y.  &  South  America 

Line,  West  Coast  Line. 
From  San  Francisco :  Atlantic  &  Pacific  Line,  Kosmos  Line. 
From  Portland,  Ore. :  Atlantic  &  Pacific  Line. 
From  Puget  Sound :  Kosmos  Line,  N.  Y.  &  Pacific  Line. 
Transshipment  Routes :   All  Lines   reaching   Colon   or  Panama 

transship  to  lines  for  Peruvian  ports. 
Porto  Rico. — From  New  York:   Bull-Insular  Line,  N.  Y.  &  Porto 

Rico  Line,  Red  "D"  Line. 
From  Mobile:  N.  Y.  &  Porto  Rico  Line. 
From  New  Orleans :  N.  Y.  &  Porto  Rico  Line. 
From  Galveston :  N.  Y.  &  Porto  Rico  Line. 
Salvador. — From   San  Francisco:   Atlantic   &  Pacific  Line,  Kosmos 

Line,  Pacific  Mail  Line. 
From  Portland,  Ore. :  Atlantic  &  Pacific  Line. 
From  Puget  Sound :  Kosmos  Line,  N.  Y.  &  Pacific  Line. 
Transshipment   Routes :   Salvador  may  be  reached  by   all  lines 

transshipping  at  Colon  or  Panama. 
Uruguay. — See  Argentine  Republic.     All  Lines  to  Buenos  Aires  also 

take  cargo  for  Montevideo. 
Venezuela.— Yxom  New  York:  Red  "D"  Line,  Royal  Dutch  W.  I. 

Mail  Line. 
From  Mobile:  Seeberg  Line. 
From  New  Orleans  :  Seeberg  Line. 
From  Port  Arthur:  Seeberg  Line. 
Transshipmeiit   Routes:    The  Royal   Mail   S.   P.    Co.   transships 

cargo   at   Trinidad   for   Venezuela   coast   ports   as   far   as   La 

Guaria.     The  Trinidad  Line  works  in  connection  with  Orinoco 

River  boats,  transshipping  at  Trinidad  for  Ciudad  Bolivar, 


APPENDIX  621 


EEQUIREMENTS  FOR  CONSULAR  DOCUMENTS  EXACTED 
BY  LATIN  AMERICAN  REPUBLICS 

The  preparation  of  consular  documents  is  a  very  important  mat- 
ter; because  of  the  risk  of  fines  sliipi^ers  should  take  every  precau- 
tion to  have  the  documentation,  translation,  etc.,  made  correctly. 
For  this  purpose  full  data  must  be  given  forwarding  agents,  foreign 
"freight  agents  of  the  steamship  lines,  or  export  agents  in  charge  of 
sending  the  merchandise  to  destination.  The  regulations  change  very 
often  and  it  is  essential  to  keep  advised  of  the  requirements. 

Argentina. — Documents  may  be  written  in  English.  The  consular 
banks  are  supplied  by  the  Consul  General  at  5  cents  per  set.  The 
number  of  copies  to  be  furnished  is  three.  Fee  for  certifying  is  $2.00. 
Other  requirements  are  that  three  copies  of  the  steamship  bill  of 
lading  be  certified.  There  are  also  required  three  certificates  of 
origin  which  must  be  attached  to  the  bill  of  lading. 

Bolivia. — Documents  should  be  written  in  Spanish.  The  consular 
blanks  are  supplied  by  the  Consul  General  at  75  cents  to  90  cents 
per  set.  The  number  of  copies  necessary  is  three  or  four.  Fee  for 
certifying  is  $3.00  for  value  not  to  exceed  $200.00;  over  $200.00, 
2  per  cent,  ad  valorem  is  added.  On  shipments  moving  by  way  of 
Brazil,  Chile,  or  Argentina,  four  copies  of  bill  of  lading  are  required. 
When  moving  by  way  of  Chile,  five  copies. 

Brazil. — English  or  Portuguese  may  be  used  in  preparing  docu- 
ments. The  consular  blanks  are  supplied  by  the  Consul  General  at 
rate  of  5  cents  per  set,  three  copies  constituting  a  set.  A  fee  of 
$1.65  is  charged  for  certifj'ing  a  set.  On  shipments  whose  value 
exceeds  $48.88,  consular  invoices  are  required.  Shipments  valued 
under  that  sum  do  not  require  consular  invoices. 

Chile. — In  preparing  documents,  Spanish  or  English  may  be  used. 
Consular  blanks  supplied  by  the  Consul  General  may  be  had  at  the 
cost  of  25  cents  per  set  of  four.  The  consular  fee  ranges  from  1  per 
cent,  to  about  ^2  per  cent,  ad  valorem.  An  additional  charge  of  50 
cents  is  made  for  certifying  bills  of  lading. 

Colombia. — In  preparing  documents,  the  Spanish  language  should 
be  used.  A  charge  of  10  cents  is  made  for  a  set  of  five  copies  of 
consular  blanks  which  can  be  obtained  from  the  Consul  General.  The 
consular  fee  ranges  from  1  per  cent,  to  3  per  cent,  ad  valorem,  accord- 
ing to  value  of  goods. 

Cuba. — The  Spanish  or  English  language  may  be  used  in  prepar- 
ing consular  documents.  A  charge  of  10  cents  for  a  set  of  fiiur  or 
five  consular  blanks  is  made,  which  documents  may  be  obtained  from 


522  APPENDIX 

the  Consul  General.  The  consular  fee  amounts  to  about  1  per  cent, 
ad  valorem,  and  an  additional  charge  of  $1.00  is  made  for  certify- 
ing of  bill  of  lading.  On  consignments  destined  to  Havana,  it  is 
necessary  to  furnish  five  copies  of  consular  invoices;  to  other  points 
in  Cuba,  but  four  copies  are  required. 

Ecuador. — Documents  should  be  prepared  in  the  Spanish  language. 
Seven  copies  of  consular  blanks  are  required,  for  which  a  charge 
of  20  cents  is  made.  Blanks  may  be  obtained  from  the  Consul 
General.     The  consular  fee  is  about  3  per  cent,  ad  valorem. 

Guatemala. — The  preparation  of  documents  should  be  in  the  Span- 
ish language.  Five  copies  are  required,  obtainable  from  the  Consul 
General  at  a  cost  of  25  cents.  A  consular  fee  of  $7.00  is  made  for 
consignments  whose  value  does  not  exceed  $100.00,  the  fee  increasing 
as  the  value  of  shipments  increases. 

Honduras. — Preparation  of  documents  should  be  in  Spanish.  Four 
copies  of  consular  blanks  are  required,  which  cost  30  cents.  Blanks 
are  obtainable  from  the  Consul  General.  On  consignments  whose 
value  does  not  exceed  $25.00,  a  fee  of  $1.00  is  charged,  the  consular 
fee  increasing  with  increased  value  of  shipments.  In  most  cases  it 
is  necessary  to  have  invoices  certified,  for  which  no  charge  is  made. 

Mexico. — The  preparation  of  documents  may  be  in  the  Spanish  or 
English  language.  Consular  blanks  may  be  obtained  from  the  Consul 
General  at  a  cost  of  10  cents  for  a  set  of  four.  The  consular  fee 
amounts  to  about  $1.25  on  consignments  whose  value  does  not  exceed 
$500.00.  Consular  invoices  are  only  required  on  shipments  moving 
via  water. 

Nicaragua. — Consular  documents  should  be  prepared  in  Spanish. 
Blanks  may  be  obtained  from  the  Consul  General  at  a  cost  of  35 
cents  for  a  set  of  six.  The  consular  fee  is  computed  at  destination 
and  collection  made  from  consignee.  On  shipments  to  Nicaragua 
it  is  necessary  that  on  some  commodities,  shippers  must  certify  point 
of  origin. 

Panama. — Spanish  should  be  used  in  preparing  documents.  Con- 
sular blanks  may  be  obtained  from  the  Consul  General  at  a  cost  of 
15  cents  for  a  set  of  two.  Consul's  fee  ranges  from  9/10  per  cent, 
to  1  per  cent,  ad  valorem,  the  minimum  charge  being  $1.00.  For 
certifying  bill  of  lading  a  charge  of  $3.00  is  made. 

Paraguay. — Consular  documents  should  be  prepared  in  the  Span- 
ish language.  Blanks  may  be  obtained  from  the  Consul  General  at 
a  cost  of  5  cents  for  a  set  of  two.  The  considar  foe  for  certifying 
to  bill  of  lading  is  $2.00.  Another  requirement  is  that  shippers  must 
certify  as  to  origin  of  property. 

Peru. — In  preparing  documents,  the  Spanisli  language  should  be 


APPENDIX 


523 


used.  Consular  blanks  may  be  obtained  from  the  Consul  General. 
A  charge  of  25  cents  is  made  for  a  set  of  four.  A  Consul's  fee  of 
1  per  cent,  ad  valorem  is  made.  Another  requirement  is  that  bill 
of  lading  shall  be  certified,  for  which  no  charge  is  made. 

Salvador. — The  Spanish  language  should  be  used  in  preparing 
documents.  Consular  blanks  may  be  obtained  from  Consul  General 
at  a  cost  of  25  cents  per  set  of  four.  Consular  fee  is  charged  in 
accordance  with  value  of  shipment,  ranging  from  $1.00  upward. 

Santo  Domingo. — Documents  should  be  prepared  in  Spanish. 
Blanks  may  be  obtained  from  the  Consul  General,  four  blanks  consti- 
tuting a  set.  The  Consul's  fee  is  computed  at  destination  and  col- 
lected from  the   consignee. 

Uruguay. — Documents  are  not  required,  but  it  is  necessary  that 
bill  of  lading  be  certified,  for  which  a  charge  of  $1.05  is  made.  The 
Spanish  language  should  be  used. 

Venezuela. — Consular  documents  should  be  prepared  in  Spanish. 
Blanks  may  be  obtained  from  the  Consul  General  at  a  cost  of  35 
cents  for  a-  set  of  four.  The  Consul's  fee  is  computed  on  the  value 
of  consignments,  a  charge  of  $3.75  being  made  for  shipments  valued 
at  $100.00  or  less. 

LIST  OF  AMEEICAN  CONSULATES  IN  LATIN  AMERICA 


The  following  is  a  list  of  American  consulates,  arranged  accord- 
ing to  the  republics.  Those  marked  with  an  asterisk  [*]  are  Consular 
Agencies,  subordinate  to  and  under  the  direction  of  the  principal 
Consular  Officers.  Those  unmarked  are  the  principal  officers,  Con- 
sulates General  and  Consuls. 


Argentine  Republic 
Buenos  Aires 
Rosario 

*  Santa  Fe 

Brazil 
Bahia 
Para 

*  Manaos 

*  Maranhao 
Pernambuco 

*  Ceara 

Rio  de  Janeiro 

*  Victoria 


Chile 
Iquique 

*  Ahtof  agasta 

*  Arica 
Punta  Arenas 
Valparaiso 

*  Caldera 

*  Coquimbo 

*  Talcahuano 

Colombia 
Barranquilla 
*Cali 

*  Honda 


*  Medellin 

*  Quibdo 
*Santa  Marta 

Bogota 
Cartagena 

Costa  Rica 
Port  Limon 
San  Jose 

*  Punta  Arenas 

Cuba 
Cienfuegos 

*  Caibarien 

*  Sagua  la  Grande 


5U 


APPENDIX 


Habana 

*  Cardenas 

*  Mantanzas 

*  Nueva  Gerona 

Isle  of  Pines 
Santiago  de  Cuba 

*  Antilla 

*  Barracoa 

*  Manzanillo 

*  Nuevitas 

Dominican  Republic 
Puerto  Plata 

*  Monte  Cristi 

*  Samana 

*  Sanchez 
Santa  Domingo 

*  Azua 

*Macoris  (San  Pe- 
dro de) 

Ecuador 
Guayaquil 

*  Bahia     de     Cara- 

quez 

*  Esmeraldas 

Haiti 
Cape  Hatien 

*  Gonaives 

*  Port  de  Paix 
Port  Au  Prince 

*Aux  Cayes 

*  Jacmel 

*  Jeremie 

*  Petit  Goave 

Honduras 
Ceiba 

*  Bonacca 

*  Roatan 
*Tela 


Puerto  Cortes 

*  San  Pedro  Sula 
Tegucigalpa 

*  Amapala 

*  San  Juancito 

Mexico 
Acapulco,  Guerrero 
Aguascalientes, 

Aguascalientes 
Chihuahua,     Chihua- 
hua 

*  Parral 

Ciudad  Juarez,  Chi- 
huahua 

Ciudad  Porfirio  Diaz, 
Coahuila 

Durango,  Durango 

*  Topia 

*  Torreon,  Coahuila 
Ensenada,  Lower  Cal- 
ifornia 

Frontera,   Tabasco 
Guadalajara,  Jalisco 
Hermosillo,  Sonora 

*  Guaymas 

La  Paz,  Lower  Cali- 
fornia 

Manzanillo,  Colima 

Matamoros,  Tanaau- 
lipas 

Mazatlan,  Sialoa 

*  Los  Moches 
Mexico,   Mexico 

*  Guanajuato 

*  Oaxaca 

*  Puebla 
Monterey,  Nuevo  Le- 
on 

Nogales,  Sonora 

*  Cananea 

Nuevo  Laredo,  Ta- 
maulipas 


Progreso,   Yue..l   .; 
Salina  Cruz,  Oa::.;  ■.; 

*  Puerto  Mexico 
Saltillo,   Coahuila 
San  Luis  Potosi,  San 

Luis  Potosi 
Tainpico,       TamauH- 
pas 

*  Tuxpani,         Vera 

Cruz 
Tapachula,   Chiapas 
Veracruz,  Veracruz 

Nicaragua 
Bluefields 

Cape  Gracias  a  Dios 
Corinto 

*  Matagalpa 

*  San  Juan  del  Sur 
Managua 

Panama 

Colon 

*Bocas  del  Tore 
Panama 

*  Santiago 

Paraguay 

Asuncion 

Peru 
Callao 

*  Cerro  de  Pasco 

*  Mollendo 

*  Paita 

*  Salaverry 
Iquitos 

Salvador 
San  Salvador 

Uruguay 
Montevideo 


APPENDIX  525 

Venezuela  *  Canipano  Puerto   Cabello 

La  Guayra  *  Ciudad  Bolivar  *  Coro 

*  Caracas  Haracaibo 

THE  USE  OF  REPLY  COUPONS 

The  reply  coupon  is  used  to  prepay  return  postage  and  its  cost  is 
6  cents.  This  coupon  will  be  exchanged  in  certain  countries  for  the 
postage  stamp  of  that  country  equivalent  in  value  to  United  States 
five-cent  postage  stamps.  The  same  rates  of  postage  apply  from  most 
countries  to  the  United  States  as  from  the  United  States  to  them. 
Reply  coupons  are  sold  for  use  in  the  following  countries:  Argen- 
tina, Chile,  Costa  Rica,  Cuba,  Hayti,  Honduras,  Mexico. 

MONEY   ORDER  FEES  FOR  LATIN  AMERICA 

Below  are  given  the  cost  of  international  money  orders  to  certain 
republics  in  Latin  America. 
For  sums  not  exceeding 

$10 8  cents  Over  $50  to  $60 30  cents 

Over  $10  to  $20 '...10     "  Over  $60  to  $70 35     " 

Over  $20  to  $30 15     "  Over  $70  to  $80 40     " 

Over  $30  to  $40 20     "  Over  $80  to  $90 45     " 

Over  $40  to  $50 25     "  Over  $90  to  $100 50     " 


FEES   FOR   FOREIGN    MONEY  ORDERS   WHEN   PAYABLE   IN 
BOLIVIA,    CHILE,    COSTA    RICA,    MEXICO,    PERU 

For  sums  not  exceeding 

$10 10  cents         Over  $50  to  $60 60  cents 

Over  $10  to  $20 20     "  Over  $60  to  $70 70     " 

Over  $20  to  $30 30     "  Over  $70  to  $80 80     " 

Over  $30  to  $40 40     "  Over  $80  to  $90 90     " 

Over  $40  to  $50 50     "  Over  $90  to  $100 1  doUar 


COUNTRIES  IN  LATIN  AMERICAN  REPUBLICS  TO  WHICH 
INTERNATIONAL  MONEY  ORDERS  MAY  BE  OBTAINED 

Bolivia  Mexico 

Chile  Panama 

Costa  Rica  Peru 

Cuba  Salvador 
Honduras 


526 


APPENDIX 


LATIN  AMEEICAN  COUNTRIES  TO  WHICH  THE  PARCEL 
POST  EXTENDS 


Limit  of  Size  of  Parcels 

Limit  of 
Weight 

Countries 

Greatest 

Length  in 

Feet 

Greatest 
Length  and 

Girth 

Combined 

in  Feet 

Greatest 

Girth  in 

Feet 

Limit  of 
^■alue 

Bolivia 

3M 

33^ 
3^ 
2 

3H 
33^ 
3K 

W2 

3M 
2 

3M 
31^ 

^2 
^V2 
33^ 

3^ 

6 

6 
6 
6 
6 
6 
6 
6 
6 

"e" 

6 
6 
6 
6 
6 

..^.. 
..^.. 

11  pounds 

11  pounds 
11  pounds 
11  pounds 
11  pounds 
11  pounds 
11  pounds 
11  pounds 
11  pounds 
See  Note 
11  pounds 
11  pounds 
11  pounds 
11  pounds 
11  pounds 
11  pounds 

Brazil    (See    Notes    1 
and  2) 

Chile 

Colombia  (See  Note  9) 
Costa  Rica. 

Ecuador 

Guatemala 

Haiti 

Honduras 

Mexico  (See  Note  4) .  . 

Nicaragua 

Panama 

Salvador 

Santo  Domingo 

Uruguay 

Venezuela 

$50. 

Note  1. — Parcels  sent  to  Brazil  by  parcel  post  can  only  be  sent  to 
the  exchange  offices  of  Bahia,  Para  (Belem),  Pernanibuco  (Recife), 
Rio  de  Janeiro  and  Sao  Paulo.  Parcels  addressed  to  other  post 
offices  in  Brazil  will  be  held  at  one  of  the  above  named  exchange 
post  offices  and  notice  of  arrival  will  be  sent  to  the  addressee  asking 
liini  to  take  delivery  of  the  parcel.  If  the  addressee  or  some  per- 
son authorized  by  him  does  not  present  himself  at  the  exchange  post 
office  to  take  delivery  of  the  parcel,  the  sender  in  the  United  States 
will  be  consulted  as  to  its  further  disposition.  The  parcel  post 
convention  with  Brazil  provides  as  an  exceptional  measure  that  fatty 
substances,  liquids,  and  those  which  easily  liquefy  may  be  included 
in  parcels  exchanged  under  the  convention,  but  only  when  packed  so 
as  thoroughly  to  protect  other  articles  from  damage  in  case  of  acci- 
dent. Arms,  and  ammunition  are  forwarded  at  the  sender's  risk. 
Articles  of  value  including  valuable  papers  (bank  notes,  government 
securities,  etc)  are  exempt  from  any  fine  when  sent  by  parcel  post 
to  Brazil  but  are  subject  to  a  fine  of  25  per  cent,  of  the  value  if 
forwarded  in  the  regular  mails, 


APPENDIX 


527 


Note  2. — Under  the  convention  with  Brazil,  unsealed  parcels  may 
contain  in  sealed  receptacles  articles  which  cannot  be  safely  trans- 
mitted in  unsealed  receptacles,  provided  that  the  contents  of  the 
closed  receptacles  are  plainly  visible  or  are  precisely  stated  on  the 
covers  of  the  inclosed  receptacles,  and  that  the  package  is  so  wrapped 
that  the  outer  cover  can  be   easily  removed. 

Note  3. — Colombia  imposes  a  surtax  of  5  per  cent,  of  the  declared 
value  on  merchandise  imported  by  parcel  post.  The  importer  is 
required  under  penalty  of  an  additional  surtax  to  present  an  in- 
voice, which,  however,  need  not  bear  consular  certification.  Articles 
imported  into  Colombia  by  parcel  post  are  subject  to  the  following 
special  customs  regulation :  If  articles  dutiable  under  different  tariff 
classes  are  mailed  in  the  same  parcel,  they  are  all  dutiable  at  the 
rate  applicable  to  the  article  paying  the  highest  rate  of  import  duty. 

Note  k- — The  weight  of  parcel  post  packages  for  Mexico  is  limited 
to  eleven  pounds  for  important  places  such  as  railroad  stations  and 
ports  with  which  there  is  frequent  communication.  The  limit  of 
weight  for  places  not  easy  of  access  is  four  pounds  six  ounces.  Post- 
masters can  always  tell  which  limit  applies  to  any  place. 


TABLE  OF  MAIL  TIME  FKOM  NEW  YORK  TO  LATIN 
AMERICAN  CITIES 

Below  are  listed  the  principal  places  in  Latin  America  to  which 
mail  is  sent  by  different  routes.  The  time  specified  for  each  place 
is  that  required  for  an  ordinary  delivery.  Occasionally  more  time 
is  needed,  as  there  are  delays  incident  to  ocean  transportation. 


City 


Route 

Day.s 

Direct 

27 

Direct 

15 

Direct 

25 

Panama.  .  .  . 

17 

Direct 

11 

Trinidad .  .  . 

11 

Direct 

7 

Panama.  .  .  . 

30 

New  Orleans 

7 

New  Orleans 

7 

Panama.  .  .  . 

12 

Direct 

4 

Panama.  .  .  . 

26 

Direct 

12 

Direct 

7 

New  Orleans 

7 

Direct 

17 

Direct 

10 

Direct 

18 

Direct 

7 

City 


Route 


Days 


Antofagasta,  Chile . . . . 

Bahia,  Brazil 

Buenos  Aires,  Arg.  .  .  . 

Callao,  Peru 

Cartagena,  Col 

Ciudad  Bolivar,  Yen  . . 

Colon,  Panama 

Coquimbo,  Chile 

Grey  town,  Nic 

Guatemala  City 

Guayaquil,  Ecu 

Havana,  Cuba 

Iquique,  Chile 

Jacmel,  Haiti 

La  Guayra,  Yen 

Livingston,  Guat 

Maceio,  Brazil 

Maracaibo,  Yen 

Maraham,  Brazil 

Mayaguez,  P.  R 


Mexico  City,  Mex.  .  . 

Mollendo,  Peru 

Montevideo,  LTru. .  .  . 

Panama 

Payta,  Peru 

Pernambueo,  Brazil.. 
Port  au  Prince,  Haiti 
Port  Limon,  C.  R .  .  . 
Puerto  Cabello,  Yen. 
Puerta  Plata,  SanD.  . 
Rio  de  Janeiro,  Brazil. 

Samana,  San  D 

San  Domingo  City.  . . 
Santa  Marta,  Col. . . . 

Santiago,  Chile 

Santos,  Brazil 

Savanilla,  Col 

Tampico,  Mex 

\alparaiso,  Chile .  .  .  . 

Yera  Cruz,  Mex 

Yera  Cruz,  Mex 


By  rail 

Panama. .  .  . 

Direct 

Colon 

Panama. .  .  . 

Direct 

Direct 

New  Orleans 

Direct 

Direct 

Direct 

Direct 

Direct 

Direct 

Panama. .  .  . 

Direct 

Direct 

By  rail 

Panama. .  .  . 

By  rail 

By  steamsliip 


5 

24 
25 

7 
14 
13 
12 

7 
10 

7 
10 

8 

7 
15 
32 
21 

9 

G 
31 

C 


528 


APPENDIX 


WEIGHTS  AND  MEASURES  USED  IN  LATIN  AMERICA 

Below  is  given  a  table  of  the  principal  weights  and  measures  used 
in  Latin  American  countries.  The  American  equivalents  are  given 
with  approximate  accuracy. 


Denominationa 


Where  Used 


American 
Equivalents 


Arobe 

Arroba  (dry)  . 
Arroba  (dry) . . 
Arroba  (dry) . . 
Arroba  (dry) . . 
Arroba  (liquid) 

Baril 

Carga 

Centaro 

Cuadra 

Cuadra 

Cuadra 

Cuadra 

Cubic  meter.  . 
Fanega  (dry) . . 
Fanega  (dry) . . 
Fanega  (dry) . . 
Fanega  (dry) . . 
Fanega  (dry) . . 
Fanega  (dry) . . 
Fanega  (dry) . . 

Frasco  

Frasco 

Gram 

League  (land). 
Libra  (pound). 
Libra  (pound). 
Libra  (pound). 
Libra  (pound). 
Libra  (pound). 
Libra  (pound). 
Libra  (pound). 
Libra  (pound). 

Manzana 

Marc 

Milla 

Pie 

Quintal 

Quintal 

Quintal 

Quintal 

Suerte 

Vara 

Vara 

Vara 

Vara 

Vara 

Vara 

Vara 


Paraguay 

Argentine  Republic 

Brazil 

Cuba 

Venezuela 

Cuba,  Spain,  and  Venezuela .  .  . 
Argentine  Republic  and  Mexico 

Me.xico  and  Salvador 

Central  America 

Argentine  Republic 

Paraguay ■.  .  . 

Paraguay  (square) 

Uruguay 

Metric 

Central  America 

Chile 

Cuba 

Me.xico 

Uruguay  (double) 

Uruguay  (single) 

Venezuela 

Argentine  Republic 

Mexico 

Metric 

Paraguay 

Argentine  Republic 

Central  America 

Chile 

Cuba 

Mexico 

Peru 

Uruguay 

Venezuela 

Costa  Rica 

BoUvia 

Nicaragua  and  Honduras 

Argentine  Republic 

Argentine  Republic 

Brazil; 

Chile,  Mexico,  and  Peru 

Paraguay 

Uruguay 

Argentine  Repubhc 

Central  America 

Chile  and  Peru 

Cuba 

Me.xico 

Paraguay 

Venezuela '.• . 


25  pounds 
25.3171  pounds 

32 .  38  pounds 
25 .  3664  pounds 
25.4023  pounds 

4.263  gallons 
20.0787  gallons 
300  pounds 
4.2631  gallons 
4 . 2  acres 
78.9  yards 
8.077  feet 
Nearly  2  acres 
35 . 3  cubic  feet 
1 .  5745  bushels 
2.575  bushels 
1 .  599  bushels 
1.54728  bushels 
7.776  bushels 
3.888  bushels 
1 .  599  bushels 
2.5096  quarts 
2 . 5  quarts 
15.432  grains 
4 . 633  acres 
1 .0127  pounds 
1 .  043  pounds 
1 .  014  pounds 
1.0161  pounds 
1.01465  pounds 
1.0143  pounds 
1.0143  pounds 
1.0161  pounds 
1  5-6  acres 

0 .  507  pounds  • 

1 .  1493  miles 
0 .  9478  foot 
101.42  pounds 
130.06  pounds 
101.61  pounds 
100  pounds 

2 .  700  cuadras 
34.1208  inches 
33.874  inches 
33 . 367  inches 

33 .  384  mches 

33  inches 

34  inches 

33 . 384  inches 


APPENDIX  6^^ 


DISTRIBUTION  BY  COUNTRIES  OF  CAPITAL  OF  CITI- 
ZENS OF  THE  UNITED  STATES  INVESTED  IN  LATIN 
AMERICA 

South  America'. 

^f  °*'"^ $40,000,000 

^°^^;^ 10,000,000 

J5j'^f    50,000,000 

^  ,     •  • 15,000,000 

^^^^^^'^ 2,000,000 

^^'^^^^ 5,000,000 

^'"^^^^ 10,000,000 

;,^'"" 35,000,000 

!!™^"^^ 5,000,000 

^^''^^^^^ 3,000,000 

Total  South  America $175,000,000 

Central  America;: 

^°'*f^'f $7,000,000 

2"^*f™^l^ 20,000,000 

^^"^"'•^^ 3,000,000 

^'^"^^S^^ 2,500,000 

iTT 5,000,000 

^^^^^^"^ 2,500,000 

Total  Central  America $40,000,000 

North  America: 

S""^.^'  "a^":'^"^ $150,000,000 

Haiti  and  banto  Dommgo -.  ^qq  qqq 

^^^^'^ ::;:::::::::::  75o;ooo;ooo 

Total  North  America $907,500,000 

Total  Latin  America $1,122,500,000 


)30 


APPENDIX 


COMMEECE  WITH  LATIN  AMERICA 

The  following  statistics  demonstrate  the  importance  of  the  com- 
merce between  the  United  States  and  Latin  America : 


Year 

Total  Imports 

Imports 

from 

United  States 

Per 
Cent. 

Total  Exports 

Exports 

to 

United  States 

Per 
Cent. 

Argentina.  .  .  . 

Bolivia 

Brazil 

Costa  Rica. .  . 
Guatemala.  .  . 
Honduras .... 
Nicaragua. . .  . 

Panama 

Salvador 

Chile 

Colombia.  .  .  . 

Cuba 

Ecuador 

Haiti 

Mexico 

Paraguay .... 

Peru 

Santo  Domingo 

Uruguay 

Venezuela.. .  . 

1913 
1913 
1913 
1913 
1913 
1913 
1913 
1912 
1913 
1913 
1913 
1914 
1912 
1913 
1913 
1913 
1913 
1913 
1913 
1914 

$406,805,000 

21,358,000 

320,865,000 

8,685,000 

10,062,000 

5,133,000 

5,708,000 

9,872,000 

6,167,000 

120,274,000 

26,987,000 

133,975,000 

10,653,000 

10,935,000 

93,020,000 

8,120,000 

29,631,000 

9,272,000 

50,666,000 

17,005,000 

$59,682,000 
1,900,000 

51,358,000 
4,408,000 
5,053,000 
3,464,000 
3,244,000 
5,413,000 
2,490,000 

20,089,000 
7,630,000 

71,380,000 
2,764,000 
6,499,000 

44,510,000 
488,000 
8,542,000 
5,767,000 
6,300,000 
6,158,000 

14.7 
8.9 
15.7 
51.4 
50.2 
67.5 
56.2 
54.8 
40.4 
16.7 
28.3 
53,3 
26.0 
59.4 
47.8 
.5 
28.8 
62.2 
12.4 
36.2 

$466,582,000 

36,551,000 

315,586,000 

10,322,000 

14,450,000 

3,300,000 

7,712,000 

2,065,000 

7,666,000 

144,653,000 

34,316,000 

170,776,000 

13,718,000 

17,273,000 

129,971,000 

5,631,000 

44,469,000 

10,470,000 

65,142,000 

26,324,000 

$22,093,000 

218,000 

102,700,000 

5,241,000 

3,923,000 

2,869,000 

2,722,000 

1,780,000 

1,310,000 

30,418,000 

18,802,000 

139,936,000 

3,965,000 

842,000 

98,544,000 

67,000 

14,761,000 

5,601,000 

2,972,000 

10,540,000 

4.7 
.0 
37.5 
50.8 
27.1 
86.9 
35.3 
86.2 
17.1 
21.0 
55.0 
80.2 
28.9 

4.9 
75.8 

1.2 

2.9 
53.5 

4.6 
40.0 

Total 

$1,311,253,000 

$317,201,000 

$1,526,977,000 

$466,362,000 

COMPARATIVE  TABLE  OF  SOUTH  AMERICAN  EXPORTS 

In  the  table  below  will  be  found  many  articles  which  are  shipped 
to  European  countries  in  a  raw  state,  and  after  being  partially  or 
completely  manufactured,  are  sold  to  the  United  States.  Hereafter 
a  larger  percentage  of  Latin  American  exports  will  be  shipped  direct 
to  this  country  from  South  America.  A  larger  and  more  direct 
commerce  with  Latin  America   is  desirable. 


United  States  Imports  in  1914 


From 
All  the  World 


From 
South  America 


From 
European 
Countries 


Dried  Blood 

Bones,  Hoofs,  and  Horns. 

Bone  Manufactures 

Charcoal 

Salts  of  Cinchona  Bark .  . 

Colors  or  Dyes 

Crude  Glycerine 

Miscellaneous  Gums 

Brushes  and  Hair  Pencils 

Casein 

Nitrate  of  Soda 

Vegetable  Wax 

Crude  Cocoa 


$391,816 

1,060,406 

238,639 

60,634 

624,125 

7,241,406 

4,486,415 

1,439,589 

2,180,853 

705,264 

17,950,786 

1,409,126 

20,797,790 


$109,124 

552,886 


39,811 
3,906 

129,888 

17,808,763 

674,231 

6,501,734 


$220,292 

495,445 

232,126 

50,177 

624,125 

7,231,359 

4,198,660 
760,823 

1,503,207 

551,623 

1,548 

254,054 

5,088,596 


APPENDIX 


531 


United  States  Imports  in  1914 


Prepared  Cocoa 

Coffee 

Copper  Ore 

Copper  Matte 

Copper  Pigs,  etc 

Cotton,  raw 

Feathers,  natural 

Feathers,  part  manufactured .... 

Bone  Dust  and  Ash 

Guano 

Fertilizers 

Fibers  and  Textile  Grasses,  raw  and 

manufactured 

Fish  Sounds 

Walnuts 

Glue 

Horse  Hair 

Other  Hair 

Straw  Hats 

Dry  Calfskins 

Dry  Cattle  Hides 

Green  Cattle  Hides 

Goat  Skins,  dry 

Goat  Skins,  green 

Horse  Skins 

Dry  Sheepskins 

Green  Sheepskins 

All  Other  Skins 

Hide  Cuttings,  etc 

Rubber,  Gutta-percha,  etc 

Iron  Ore 

Vegetable  Ivory 

Lead  Ore 

Tanned  Leather  (Free  Class) .  .  . 

Manganese  Ore 

Fresh  Beef  and  Veal 

Fresh  Mutton  and  Lamb 

Preserved  Meats 

Sausage  Casings 

Butter 

Cheese 

Crude  Mineral  Oil 

Refined  Benzine 

Souvenir  Post  Cards 

Motion  Films 

Plants,  Trees  and  Shrubs 

Platinum 

Tin 

Beeswax 

Cal>inet  Woods 

Wood  Pulp 

Wool 

Zinc 

Total 


From 
All  the  World 


$706,193 

110,725,392 

10,137,244 

3,559,740 

39,551,268 

19,456,588 

3,944,928 

3,131,972 

1,034,636 

755,833 

6,199,554 

38,096,016 

83,700 

2,296,801 

1,805,543 

1,663,448 

1,051,698 

5,532,768 

11,582,807 

18,083,314 

34,098,628 

19,037,307- 

3,153,956 

2,134,011 

6,165,947 

6,427,270 

3,835,591 

2,158,514 

72,336,544 

6,984,577 

881,354 

711,460 

2,471,220 

1,841,451 

15,140,173 

1,112,294 

1,676,300 

2,955,057 

1,753,461 

11,010,693 

11,776,737 

1,398,448 

464,058 

1,009,469 

2,092,139 

1,489,208 

39,422,479 

476,364 

6,142,536 

16,556,792 

53,190,767 

90,481 


From 
South  America 


From 
European 
Countries 


)79,322,444 


$115 

94,041,086 

2,942,111 

2,871,109 

8,773,070 

1,143,419 

57,779 

4 

35,824 

5 

790,082 

1,953 

11,451 

253,622 

607 

400,363 

33,386 

1,789,286 

530,374 

10,458,963 

11,650,263 

3,959,925 

"  "  47',358 
494,245 
562,237 
154,446 
144,675 

17,771,910 
139,093 
603,632 
182,775 
1,469 
466,125 

7,398,521 

645,095 

240,950 

202,991 

68,892 

506,535 

867,020 

13 

677 

220 

398,657 

"  "  37,207 
44,160 

io,i"7i",5i5 

66 


$694,462 

1,141,284 

1,191,937 

326,850 

9,189,642 

4,627,227 

2,455,349 

3,104,758 

645,826 

702,784 

3,424,305 

13,562,587 

32,917 

1,825,088 

1,793,712 

983,033 

864,310 

1,395,660 

10,443,920 

2,343,000 

9,027,154 

4,411,077 

3,056,481 

1,922,764 

3,559,225 

4,250,790 

2,626,033 

1,679,479 

43,800,980 

2,310,494 

63,145 

124,224 

1,818,572 

332,329 

4,962,566 

112,324 

347,314 

2,385,145 

783,029 

10,853,696 

750 

1,622 

458,281 

981,661 

1,812,960- 

1,062,409 

23,021,245 

190,701 

2,034,311 

10,784,312 

27,770,781 

50,820 


$206,748,525  $259,058,448 


532  APPENDIX 

CLUBS    AND    SOCIETIES    FOR   BETTER   PAN-AMERICAN 

RELATIONS 

The  following  is  a  list  of  some  of  the  principal  organizations  de- 
voted to  the  furtherance  of  better  social  and  commercial  relations 
with  Latin  America : 

The  Pan-American  Society  of  the  United  States. — This  is  an  or- 
ganization which  was  founded  in  1912  with  a  membership  of  a  little 
over  100.  It  now  has  a  membershp  of  over  500  and  is  one  of  the 
most  prominent  organizations  of  its  kind  in  the  United  States.  It 
has  issued  a  special  handbook  on  Latin  America ;  it  has  arranged 
numerous  important  dinners  and  luncheons  to  eminent  Latin  Ameri- 
cans. Under  its  auspices  special  meetings  have  been  held  for  the 
discussion  of  Latin  American  countries  by  prominent  Latin  Ameri- 
cans. The  Pan-American  Society  has  cooperated  with  the  Mexico 
Society  and  with  organizations  interested  in  promoting  the  cause 
of  Pan-America  in  the  United  States.  It  has  frequently  shown  hos- 
pitality and  attention  to  representative  Latin  Americans  who  visit 
this  country,  and  seeks  by  every  possible  means  to  develop  a  good 
understanding,  through  friendship  and  mutvial  knowledge  of  each 
other,  among  the  American  republics  and  people. 

The  society  includes  in  its  membership  many  prominent  Ameri- 
cans. Its  officers  are:  President,  Henry  Wert;  Vice-Presidents, 
John  Bassett  Moore,  Cabot  Ward,  John  Barrett;  Secretary,  Harry 
Erwin;  Treasurer,  Lorenzo  Daniels.  Its  address  is  the  Mills  Build- 
ing, 15  Broad  Street,  New  York. 

The  Pan-American  Society  of  the  Pacific  Coa^t. — This  is  an  or- 
ganization similar  to  the  Pan-American  Society  of  New  York  and 
endeavors  by  every  possible  means  to  cement  the  relations  between 
the  people  of  Latin  America  and  those  of  the  United  States.  The 
Pan-American  Society  of  the  Pacific  Coast  is  located  at  219  Sta- 
tion American  Bank  Building,   San  Francisco. 

The  Hispanic  Society  of  America. — This  organization  was  founded 
in  1904,  and  owes  its  being  to  the  generosity  of  Mr.  Archer  W.  Hunt- 
ington. It  maintains  a  museum  and  quarters  in  New  York  on 
Broadway  between  155th  and  156th  streets.  The  building  was  opened 
to  the  public  in  1908  and  has  been  the  scene  of  many  important 
exhibitions  of  paintings,  manuscripts,  etc.  The  membership  is  lim- 
ited to  100,  all  honorary.  It  includes  men  of  distinct  achievements 
in  Hispanic  fields.  Its  corresponding  members  are  young  men  and 
women  who  promise  to  achieve  like  distinction.  The  purpose  of  the 
gociety  is  to  cooperate  to  the  fullest  degree  in  advancing  knowl- 


APPENDIX  533 

edge  and  in  friendship  for  Spanish-  and  Portuguese-speaking  people 
among  those  of  English  speech. 

The  Ihero- American  Cluh. — This  club  affords  a  meeting  place  for 
merchants,  tourists,  planters,  and  visitors  in  general  from  Spanish 
or  Portuguese  countries.  It  is  located  at  200  West  77th  Street, 
New  York.  It  maintains  the  appurtenances  of  all  good  clubs,  with 
files  of  the  leading  newspapers  of  the  principal  Latin  American  coun- 
tries, etc.  Visiting  cards  are  issued  to  strangers  for  two  weeks,  and 
opportunity  is  given  them  to  pass  their  evenings  pleasantly  in  agree- 
able surroundings.  Foreign  merchants  are  admitted  as  nonresident 
members  as  are  also  those  who  reside  more  than  15  miles  from  New 
York.  The  dues  are  $40.00  annually,  with  an  initiation  fee  of  $15.00. 
In  the  case  of  nonresident  members,  this  is  reduced  to  one-half. 

The  Mexico  Society,  New  York. — This  is  an  organization  whose 
purpose  is  to  mold  public  sentiment  in  the  United  States  regarding 
the  republic  of  Mexico.  Its  offices  and  many  of  its  members  are 
prominent  in  Latin  American  affairs.  This  society's  activities  in- 
clude meetings  which  are  addressed  by  prominent  Mexicans,  etc.  Its 
headquarters  are  in  New  York. 

The  Spanish- American  Atheneum. — This  is  an  organization  of 
"Washington,  D.  C.  It  was  founded  in  December,  1912,  for  the 
purpose  of  promoting  literary  intercourse  among  Spanish-speaking 
people.  An  invitation  to  membership  is  extended  to  all  who  are 
interested  in  promoting  the  cause  of  Pan-America. 

The  Colomhian  Commercial  Cluh. — The  Colombian  Commercial 
Club  is  established  in  New  York  at  123  West  95th  Street.  Its  pur- 
pose is  to  bring  about  cooperation  and  good  feeling  between  the  citi- 
zens of  Colombia  and  the  United  States,  also  the  promotion,  by 
free  instruction,  of  the  knowledge  of  the  history,  language,  and  com- 
mercial possibilities  of  the  country,  the  maintenance  of  a  library 
of  books,  etc.     The  club  arranges  lectures  by  experts,  etc. 

Pan-American  Chamher  of  Commerce. — A  chamber  of  commerce, 
in  the  meaning  of  such  a  body  in  Latin  America,  whose  purpose  is 
to  assist  in  extending  the  foreign  trade  of  its  members,  particularly 
to  Latin  America.  Various  trade  branches  are  represented  by  one 
or  two  prominent  houses.  A  variety  of  services  are  rendered  to  its 
members  as  well  as  merchants  in  Latin  America.  Membership  is 
of  two  classes :  Founders  $500.00,  one  payment  oilly.  Active  mem- 
bers initiation  fee  $100.00,  dues  $50.00  yearly.  The  address  is  42 
Broadway,  New  York.     Julio  F.  Sorzano  is  president. 

Las  Americas  Association. — An  organization  to  increase  the  recip- 
rocal trade  relations  between  the  United  States  and  Latin  America. 
Membership  is  divided  according  to  the  manufacturer's  importance 


534  APl^ENDIX 

in  the  state.  The  total  possible  membership  is  1,000.  Membership 
entitles  the  holder  to  the  privileges  of  the  club  rooms,  commercial 
assistance  of  various  kinds,  an  advertisement  in  the  journal  Las 
Americas,  and  exhibition  privileges  of  merchandise  when  this  can 
be  accommodated  in  a  display  case  approximately  3  feet  8  inches  by 
2  feet  8  inches,  the  cost  of  which  is  $25.00  per  annum.  The  cost  of 
associate  membership  is  $100.00  annually,  plus  an  initiation  fee  of 
$200.00.  There  is  also  a  nonresident  membership  for  Latin  Ameri- 
cans, costing  $5.00  a  year.  The  official  journal  of  the  organization 
is  Las  Americas,  of  which  5,000  copies  are  issued  monthly.  The 
address  is  Hotel  McAlpin,  Broadway  and  34th  Street,  New  York, 
N.  Y. 

New  Yorh  Exporters'  Association. — An  organization  to  further 
the  foreign  trade  of  New  York  exporters  in  general.  Headquarters, 
New  York   City. 


TYPICAL  TOUES  OF  LATIN  AMERICA 

Below  is  given  an  outline  of  several  typical  tours  of  the  Latin 
American  republics.  The  number  of  tours  offered  is  rapidly  in- 
creasing, and  information  should  he  solicited  of  travel  bureaus  or 
railroads  and  steamship  lines  before  making  a  decision. 

Raymond  &   Whitcomb  Tours. — 

From  New  York,  January  15 $2475.00 

Cuba,  Panama,  Peru,  and  Bolivia  (including  Cuzco,  LaPaz,  and 
Lake  Titicaca),  Northern  Chile,  the  Andes,  Southern  Chile,  Straits 
of  Magellan,  Falkland  Islands,  Argentina,  Falls  of  Iguazu,  River 
Parana,  Paraguay,  Uruguay,  Brazil,  Trinidad,  Barbados.  Due  in 
New  York,  June  23. 

From  New  York,  February  5 $1485.00 

Cuba,  Panama,  Peru,  and  Bolivia  (including  Cuzco,  LaPaz,  and 
Lake  Titicaca),  Chile,  the  Andes,  Argentina,  Uruguay,  Brazil,  Trini- 
dad, Barbados.    Due  in  New  York,  May  19. 

From  New  York,  February  26 $1485.00 

Cuba,  Panama,,  Peru,  and  Bolivia  (including  Cuzco,  LaPaz,  and 
Lake  Titicaca),  Chile,  the  Andes,  Argentina,  Uruguay,  Brazil,  Trini- 
dad, Barbados.     Due  in   New  York,   June  2. 

Thos.  Coolc  &  Son  Tours. — 

From  New  York,   November  24 $1495.00 

Jamaica:  Kingston.     Panama:  Cristobal.     Peru:  Paita,  Eton  Pacas- 


APPENDIX  535 

mayo,  Salaverry,  Callao,  Lima,  Mollendo,  Arequipa,  El  Misti,  Cuzco, 
Sicuani,  Juliaca,  Puno.  Bolivia :  Guaqui,  LaPaz,  Obrajas,  Tiahua- 
naco.  Chile :  Antofagasta,  Coquimbo,  Valparaiso,  Santiago,  Los 
Andes.  Argentina :  Mendoza,  Buenos  Aires,  La  Plata,  Montevideo. 
Uruguay :  Santos.  Brazil :  Santos,  Sao  Paulo,  Itatiaia,  Palmeiras, 
Eio  de  Janeiro,  Bahia.  West  Indies:  Trinidad,  Bridgetown,  Bar- 
bados, Martinique,  St.  Pierre,  Dominica,  Guadelope.  Due  in  New 
York,  February  26. 

Typical  Examples  of  Traveling  Expense  and  Rates. — The  concrete 
examples  of  the  expense  of  traveling  in  Latin  America  may  be  ob- 
tained by  an  examination  of  the  time  tables,  steamship  and  railroad 
tariffs.  The  following  concrete  examples  might  be  added  to,  but 
will  aiford  a  basis  for  calculation : 

Buenos  Aires  ( Arg.)  to  Mendoza,  $31.40.  Buenos  Aires  to  Tucuman, 
$22.82.  Buenos  Aires  to  Valparaiso  and  Santiago,  first  class  $58.00, 
second  class  $33.81.  Panama  to  Guayaquil  (Ecuador),  Pacific  Steam 
Navigation  Co.,  $64.50.  Panama  to  Valparaiso,  Pacific  Steam  Navi- 
gation Co.,  $104.50;  to  Callao,  $86.20.  Colon  (Panama)  to  New 
York,  $75.50. 


TAXES  CHAEGED  COMMERCIAL  TRAVELERS  IN  LATIN 

AMERICA 

Argentina. — There  is  no  federal  license  for  travelers  in  Argen- 
tina. The  various  provinces  exact  different  licenses  from  salesmen 
and  the  charges  vary  considerably,  being  subject  to  frequent  modi- 
fication. 

The  following  is  a  list  of  the  rates  that  were  current  in  the  year 
1913.     (The  value  of  the  peso  is  $0.4246.) 

Buenos  Aires  (the  capital),  500  paper  pesos;  Buenos  Aires  (the 
province),  400  paper  pesos;  Santa  Fe,  400  paper  pesos;  Entre  Rios, 
600  paper  pesos;  Santiago  del  Estero,  300  paper  pesos;  San  Luis, 
400  paper  pesos;  Cordoba,  400  paper  pesos;  Tucuman,  600  paper 
pesos;  Salta,  200-1,000  paper  pesos;  San  Juan,  400  paper  pesos; 
Mendoza,  600  paper  pesos;  Corrientes,  600  paper  pesos;  Jujuy,  100 
paper  pesos;  La  Rioja,  200  paper  pesos;  Catamarca,  200-300  paper 
pesos. 

Licenses  usually  run  from  time  of  issuance  until  December  31, 
except  in  the  province  of  Salta  where  they  may  expire  on  June  30 
as  well  as  at  the  end  of  the  calendar  year.  A  license  to  do  business 
in  the  capital,  Buenos  Aires,  is  also  valid  in  the  national  territories. 
In  the  cities  of  Cordoba,  Mendoza,  and  La  Rioja  reductions  can  be 


536  APPEXDIX 

obtained  if  the  application  for  license  is  made  during  the  second 
half  of  the  year.  In  the  province  of  Corrientes  the  transaction  of 
business  with  private  individuals  necessitates  the  payment  of  an 
additional  tax  of  400  pesos.  In  Jujuy  the  license  fee  of  100  pesos 
must  be  paid  for  each  firm  represented. 

Samples  of  merchandise  which  is  dutiable  under  the  law  may  ob- 
tain free  admission  when  carried  by  traveling  salesman  if  satisfactory 
security  is  furnished  to  guarantee  the  payment  of  the  regular  cus- 
toms duties  in  the  event  that  merchandise  is  not  reexported  within 
the  maximum  period  allowed  by  law,  90  days.  Such  arrangements 
should  be  made  through  customs  agents. 

Bolivia. — There  is  no  federal  law  but  representatives  of  foreign 
houses  are  compelled  to  pay  a  tax  in  all  Bolivian  cities.  The  rates 
vary  materially.     The  following  are  typical  of  the  charges : 

La  Paz,  200  to  300  bolivianos;  Cochabamba,  1,000  bolivianos; 
Oruro,  250  bolivianos;  Potosi,  200  bolivianos;  Sucre,  300  bolivianos; 
Uyuni,  250  bolivianos;  Santa  Cruz,  400  to  800  bolivianos;  Tarija,  200 
bolivianos.      (Bolivianoi=$0.389.) 

The  period  for  which  a  license  is  issued  is  from  the  date  upon 
which  the  payment  is  made  until  the  end  of  the  calendar  year 
in  which  it  is  taken  out.  Not  infrequently  reductions  are  made. 
Samples  may  be  admitted  free  upon  the  giving  of  a  satisfactory 
bond  for  the  payment  of  the  regular  customs  duties  in  the  event 
that  samples  should  not  be  reexported.  This  obtains,  although 
the  Bolivian  customs  law  does  not  specifically  provide  for 
it. 

Brazil. — In  Brazil  no  federal  license  tax  is  assessed  by  the  republic ; 
however,  the  various  state,  government  and  municipal  authorities  fre- 
quently assess  taxes,  and  license  fees  must  be  paid.  These  vary  so  much, 
as  stated  in  Chapter  XIV,  that  a  conference  should  invariably  be  held 
with  the  nearest  American  Consul  before  attempting  to  do  busi- 
ness. Some  salesmen  arrange  with  local  firms  for  their  representa- 
tion and,  the  local  houses  having  been  registered,  a  proper  legal 
standing  to  enforce  payment  of  claims  is  obtained. 

Until  very  recently  the  usual  customs  duties  were  assessed  on  all 
samples  and  no  exceptions  were  made;  however,  lately  the  custom 
of  granting  permission  for  the  importation  of  samples  upon  the  giv- 
ing of  satisfactory  bond  has  become  more  common  and  the  maxi- 
mum period  for  which  samples  are  permitted  to  remain  in  the  repub- 
lic is  twelve  months.  As  in  the  case  of  other  countries,  formal  proof 
of  reexportation  is  required.  The  law  also  provides  that  a  salesmar 
may  pay  to  the  customs  authorities  the  usual  duties  and  upon  re- 
exportation a  refund  of  90  per  cent,  will  be  made.     The  entry  and 


APPENDIX  537 

exportation  of  samples  should  be  intrusted  to  a  recognized  customs 
broker. 

Chile. — No  federal  or  state  license  is  required  by  traveling  sales- 
men in  order  to  solicit  business.  Permission  is  granted  by  the  gov- 
ernment for  the  introduction  of  salesmen's  samples,  the  maximum 
period  being  six  months,  it  being  only  necessary  to  furnish  a  bond 
covering  the  usual  customs  duties,  which  is  forfeited  in  the  event  that 
samples  are  not  reexported  prior  to  the  expiration  of  the  term. 

In  Chile  as  well  as  in  other  Latin  American  countries  it  is  essential 
to  make  definite  arrangements  with  the  customs  authorities  at  the 
various  ports  of  departure  and  entry.  For  this  reason  it  is  essential 
that  a  complete  memorandum  of  the  samples  be  carried.  Upon  first 
entry  into  Chile,  as  likewise  into  other  countries,  a  consular  docu- 
ment, vised  by  the  Chilean  Consul  in  the  American  port  of  de- 
parture, should  be  obtained. 

Colombia. — There  is  no  federal  tax,  but  in  a  number  of  the  com- 
munities taxes  are  levied  by  the  municipal  governments.  These  are 
as  follows: 

In  Cartagena,  $25.00  for  a  visit  not  extending  over  one  year;  in 
Medellin,  $40.00  for  a  stay  of  not  more  than  four  months  (and  appar- 
ently $10.00  per  month  after  such  period) ;  in  Cali,  $30.00  for  the 
first  month  and  $5.00  per  month  after  such  period.  It  also  appears 
that  such  a  tax  has  been  levied  in  Manizales  at  the  rate  of  $10.00 
per  month  and  Santa  Marta  at  $5.00  per  month. 

Travelers'  samples  may  be  imported  free  of  duty  provided  that 
they  have  no  commercial  value.  In  the  event  that  samples  are  sala- 
ble, the  duties  are  paid  at  time  of  importation ;  provided  they  are  re- 
exported within  one  year,  three-fourths  of  the  amount  is  refunded. 
A  consular  invoice  must  invariably  be  obtained  from  the  country 
in  which  departure  is  taken  for  Colombia.  A  reliable  customs 
broker  in  the  republic  should  invariably  be  consulted  regarding 
details. 

Ecuador. — The  republic  of  Ecuador  in  1909  passed  a  law  which 
imposed  a  tax  of  100  sucres,  about  $49.00,  on  traveling  salesmen  from 
foreign  countries,  this  tax  to  be  collected  for  each  visit.  In  prac- 
tice the  collection  of  this  tax  has  not  been  rigidly  enforced.  Sam- 
ples carried  by  salesmen  may  be  admitted  free  of  duty  when  a 
proper  bond  is  furnished  guaranteeing  the  payment  of  customs 
duties.  The  period  may  be  that  specified  in  making  application  for 
the  bond.  In  order  to  avoid  difficulties,  particularly  on  a  first  visit, 
the  salesman  should  be  ])rovided  with  a  letter  from  his  principals 
to  one  of  the  prominent  firms  of  the  port,  requesting  this  courtesy 
for  their  representative,  furnishing  a  guaranty  against  loss. 


538  APPENDIX 

Paraguay. — There  is  no  federal  tax  for  samples,  but  various  mu- 
nicipalities charge  different  rates  in  direct  ratio  to  the  importance 
and  amount  of  the  sales  made.  The  following  taxes  are  authorized 
in  the  cities  of  Asuncion,  Villa  Rica,  Concepcion,  and  Villa  del 
Pilar :  first  class,  5,500  pesos ;  second  class,  4,000  pesos ;  third  class, 
2,500  pesos;  fourth  class,  1,800  pesos;  fifth  class,  1,200  pesos.  At  other 
places  in  the  republic  the  taxes  are  only  one-third  as  high.  The 
taxes  are  payable  in  paper  pesos  which  are  much  depreciated. 

As  in  many  of  the  other  republics  the  taxes  in  Paraguay  are  not 
always  collected  and  only  infrequently  is  payment  necessary.  Sales- 
men's* samples  may  be  imported  upon  the  giving  of  a  proper  bond. 
It  is  however  essential  that  the  samples  be  reexported  through  the 
same  port  which  they  entered. 

Peru. — The  government  of  Peru  enforces  no  national  tax  on  trav- 
eling salesmen,  but  in  the  different  municipalities  vai'ying  taxes  are 
collected.  In  Arequipa  the  tax  is  25  soles,  about  $12.00  quarterly; 
in  Cuzco  it  is  50  soles,  about  $24.00  for  a  visit.  The  payment  of 
these  taxes  is  said  to  be  not  rigidly  enforced. 

Samples  are  accorded  free  admission  subject  to  certain  rules,  the 
principal  one  being  the  deposit  in  cash  or  bank  draft  of  the  usual 
customs  duties  on  dutiable  merchandise,  which  is  refunded  provided 
the  reexportation  takes  place  within  three  months.  It  is  essential 
that  no  variation  in  the  quantity  or  character  of  the  goods  shall  have 
taken  place  while  within  the  Pepublic,  else  they  will  be  confiscated. 

Uruguay. — The  government  of  Uruguay  imposes  upon  commercial 
travelers  the  usual  taxes  which  apply  to  the  line  of  business.  In 
the  Department  of  Montevideo  it  is  200  pesos  and  elsewhere  in  the 
Republic  it  is  100  pesos  (peso=:$1.034).  The  period  for  which  the 
license  is  granted  is  from  time  of  application  until  end  of  calendar 
year.  The  usual  method  of  handling  this  matter  is  for  the  foreign 
traveler  to  make  arrangements  with  a  local  business  house  which  is 
already  registered.  Traveling  salesmen  are  permitted  to  furnish 
bonds  covering  the  customs  duties  on  samples  carried.  If  samples 
are  not  properly  reexported  at  the  end  of  a  given  period,  fixed  by  the 
authorities,  the  bond  is  forfeited. 

Venezuela. — No  federal  or  local  taxes  are  imposed  on  foreign 
travelers  by  the  republic  of  Venezuela.  Samples  may  be  imported 
free  of  duty  provided  proper  bond  is  given,  the  latter  being  forfeited 
in  the  event  that  the  samples  are  not  reexported  within  a  definite 
period. 


\ 


APPENDIX  63& 


CENTEAL  AMERICA 

Costa  Rica. — No  federal  taxes  imposed,  but  various  municipalities 
collect  fees  from  traveling  salesmen.  In  San  Jose  the  tax  is  50 
colones,  $23.26,  the  period  being  for  six  months.  It  is  said,  however, 
that  only  about  10  per  cent,  of  the  commercial  travelers  make  this 
payment.  At  Port  Limon  the  municipal  tax  is  2  colones  ($0.93)  per 
day,  or  8  colones  ($3.72)  per  week.  Travelers'  licenses  are  also 
required  in  the  following  cities:  Punta  Arenas,  $6.00;  San  Ramon, 
Puriscal  and  Grecia,  $2.00;  and  Turrialba,  $3.00. 

Guatemala. — Neither  the  Republic  of  Guatemala  nor  any  of  its 
municipalities  or  states  imposes  licenses  upon  commercial  travelers. 
Samples  may  be  imported  upon  the  giving  of  a  proper  bond;  al- 
though the  law  fixes  two  months  as  the  period,  it  is  said  not  to  be 
too  rigidly  enforced. 

Honduras. — No  federal  taxes  are  imposed  by  the  government  of 
Honduras  on  the  samples  carried  by  commercial  travelers.  The 
various  municipalities,  however,  provide  for  the  collection  of  such 
fees,  although  the  laws  are  said  not  to  be  enforced  very  strictly. 
In  the  capital,  Tegucigalpa,  and  in  San  Pedro  Sula  the  tax  is  50 
pesos  for  each  visit.  In  the  port  of  Cortes  the  fee  is  25  pesos,  these 
taxes  being  for  each  visit,  although,  as  in  the  other  Latin  American 
countries,  the  collection  is  often  a  matter  of  the  attitude  of  the 
officials.  Samples  may  be  imported  upon  the  giving  of  deposit  of 
the  duty  usually  paid,  but  the  amount  is  refunded  if  the  samples 
are  reexported  within  ninety  days. 

Nicaragua. — No  federal  or  municipal  taxes  are  imposed  on  com- 
mercial travelers  in  Nicaragua.  Samples  carried  by  traveling  sales- 
men are  granted  free  admission  provided  a  bond  for  the  amount  of 
duty  leviable  is  furnished.  In  ease  the  bond  cannot  be  given  a  de- 
posit of  currency  equal  to  the  duty  is  accepted,  and  the  latter  is 
refunded  if  samples  are  reexported.  The  period  for  which  they  are 
allowed  to  remain  in  the  country  varies  from  one  to  three  months. 
The  samples  may  be  entered  at  one  port  and  reexported  via 
another. 

Salvador. — The  republic  of  Salvador  imposes  no  federal  tax,  but 
there  are  various  municipal  taxes  to  be  paid  varying  in  amount.  In 
San  Salvador,  the  capital,  the  nominal  fee  is  50  pesos  and  in  some 
of  the  less  important  places  it  is  10  pesos.  The  license  is  granted 
for  a  period  of  one  year.  When  salesmen  carry  samples  which  are 
salable  an  additional  tax  of  100  pesos  is  exacted,  and  if  the  stay  is 
longer  than  two  months  an  additional  fee  of  25  pesos  for  each  month 


^40  APPENDIX 

is  collected,  Salesmen's  samples  may  be  imported  free  of  duty 
provided  proper  bond  is  given.  In  this  country,  as  in  the  other  re- 
publics of  Latin  America,  when  samples  are  imported  through  one 
port  and  reexported  through  another,  the  salesmen  should  be  very 
particular  to  obtain  from  the  custom  house  at  port  of  entry  a 
document  which  may  be  easily  checked  up  at  the  port  of  de- 
parture in  order  that  there  may  be  no  difficulty  regarding  the  can- 
cellation of  the  bond. 

Panama. — There  is  no  federal  tax  assessed  in  Panama,  but  it  is 
necessary  to  obtain  various  municipal  licenses.  The  representatives 
of  foreign  commercial  houses,  whether  or  not  they  carry  samples, 
must  pay  $10.00  for  each  thirty  days  or  fraction  thereof.  In  Colon 
and  Bocas  del  Toro  the  taxes  are  $12.50  and  $10.00  respectively, 
for  six  months.  Eepresentatives  of  foreign  houses  -who  do  not  sell 
merchandise  or  obtain  orders  are  not  required  to  pay  a  license.  The 
permanent  representatives  of  foreign  houses  in  Panama  pay  a  gradu- 
ated tax  assessed  by  the  Commercial  Tax  Commission.  Samples  are 
permitted  to  be  introduced  free  of  duty  provided  bond  is  given  for 
their  reexportation.  If  the  samples  do  not  check  up  properly  when 
application  for  reexportation  is  made,  the  bond  is  forfeited. 

Mexico. — There  is  no  federal  tax  on  samples  carried  by  commercial 
travelers.  Heretofore  the  various  states  or  mvmicipalities  have  nomi- 
nally been  compelled  to  pay  taxes,  but  in  practice  the  collection  was 
a  matter  of  the  attitude  of  the  authorities.  Por  the  duties  on  sam- 
ples, travelers  may  give  bond,  which  is  canceled  upon  the  re- 
exportation of  the  merchandise.  A  certificate  shoidd  always  be  de- 
demanded  by  the  traveler  at  the  port  of  entry,  to  be  used  upon 
departure  from  another  port. 

Culja. — There  is  no  federal,  state  or  municipal  tax  upon  commer- 
cial travelers.  Por  the  admission  of  samples  carried  by  travelers,  it 
is  necessary  to  make  deposit  covering  the  duties  on  samples  which 
have  a  commercial  value.  If  reexported  within  three  months,  75 
per  cent,  of  the  duty  is  refunded.  It  is  important  that  this  be  borne 
in  mind  in  order  that  representatives  may  be  supplied  with  sufficient 
funds. 

Dominican  Republic. — There  is  no  federal  or  local  tax  upon  com- 
mercial travelers.  Por  samples  carried  bond  may  be  given,  usually 
for  a  period  of  ninety  days.    When  reexported  the  bond  is  canceled. 

Uaiii. — Under  the  law  a  tax  of  $50.00  must  be  paid  by  commercial 
travelers.  However,  the  payment  of  this  tax  is  subject  to  various 
interpretations.  Samples  may  be  admitted  free  when  salable,  but  for 
merchandise  of  a  commercial  value  bond  nmst  be  given.  When  sam- 
ples are  reexported  this  is  canceled. 


APPEXDIX  541 

Tolal  Imports  and  Exports  of  Merchandise  in  Latin  America  by  Countries 
2'welve  Months  Ending  December 

Imports  Exports 

1913                  x914                  1915  1913                 1914  1915 

^Costa  Rfca"''^«3',458,0e9      $3,353,425      $3,522,144  $3,516,700    $3,044,575  $2,703,953 

Guatemala         3,413,514         4,594,890         6,489,280  3,366,596       3,127,117  3,176,627 

Honduras..         3,314,229         2,751,497         2,598,784  3,753,179      5,600,667  4,403,603 

Nicaragua.         1,668,403         1,449,746         2,127,447  2,888,026      2,300,301  2,626,268 

Panama...         4,664,746         4,473,4.56         4.655,736  24,368,023    20,974,931  20,985,896 

Salvador..          1,470,323         1,390,056         1,864,898  2,270,964       1,817,843  2,643,759 

Total  Central    $17,989,283     £18,013,070    $21,258,289  $40,163,487  $36,871,434  $36,540,106 
American  States 

Mexico $81,735,434     $86,280,966    $83,551,993  $48,052,1.37  $33,215,.561  $41,071,140 

Cuba $125,093,740  $146,844,576  $197, .548, 146  $73,238,8.34  $67,877,383  $95,113,6.52 

Dom.  Rep...         3,991,794         6,582,6.30       10,810,995  6,574,495      4,370,102  7,373,567 

Haiti 810,201         .1,171,649        1,494,927  6,698,155      3,841,154  4,904,053 

$129,895,735  $153,598,855  $209,854,068  $81,511,484  .576,088,038  $107,391,272 

South  America 

Argentina.     $25,575,667    $56,274,246    $94,677,644  $54,980,415  $27,127,958  $52,883,035 

Bolivia....                    398                    172              33,107  962,459          805,876  960,189 

Brazil 100,947,735      95,000,623     120,099,305  39,901,203    23,275,894  34, 883, .540 

Chile 29, .553,823       24,238,713       37,284,043  16,616,012     13,627,618  17,800,611 

Colombia.       15,714,447       17, .547,987       19,819,946  7,647,165      6,784,275  8,980,177 

Ecuador...         3,462,567         3,3.55,916         5,416,.565  2,821,646      2,504,014  3,368,493 

Paraguay  .              67,220              61,198              29,328  215,058            82,595  52,846 

Peru 10,824,587       11,209,941       15,803,088  7,608,916       5,876,487  7,905,557 

Uruguav..          1,860,609         9, .597,108       13,889,464  7,617,110      4,1.53,438  7,865,602 

Venezuela.         9,308,761       10,916,934       14,292,262  6,462,441       6,023,532  7,604,487 

Total  South     $197,315,814  $228,262,907  $321,345,352  $142,833,325  $88,261,687  $142,304,537 
America         ■ 


POPULATION    OF    THE    LATIN    AMERICAN    COUNTRIES 
ACCORDING  TO  CLASSES 

Argentina. — Population  7,467,878,  per  square  mile  6.2.  Of  the  pop- 
ulation tlie  aliens  numbered  1,744,000.  The  percentage  of  four  prin- 
cipal foreign  nationalities  is  as  follows :  Italians  28  per  cent. ;  Span- 
iards 24  per  cent.;  English  1.5  per  cent.;  German  1.5  per  cent.  The 
immigration  into  the  republic  for  the  period  1857-1913  was  4,550,402. 
The  nationalities  represented  were  as  follows:  Italians  2,247,760; 
Spaniards  1,420,393;  French  211,608;  Austrians  85,053;  Britons 
53,792;  Germans  59,688;  Swiss  32,504;  Belgians  19,521;  Russians 
155,285;  Syrians  130,937;  Portuguese  24,997;  North  Americans  6,028. 
Typical  immigration  (1913):  Italians  114,252;  Spaniards  122,271; 
Russians  18,616;  Turks  19,542;  Danes  819;  Americans  519.  There  is 
a  high  birth  rate  and  a  low  death  rate.  There  is  also  an  excess  of 
immigration  over  emigration,  although  there  has  been  a  very  large 
annual  immigration  from  Italy  for  work  on  the  estancias.  The  na- 
tiv?§  are  chiefly  descendants  of  the  Spanish  settlers  and  there  i§  a 


543  APPENDIX 

percentage  of  Mestizos  resulting  from  tlieir  intermarriage  with  the 
Indians. 

Bolivia. — Population  2,088,^11.  Of  the  Bolivian  people,  the  num- 
ber of  Caucasians  of  European  origin  (whites)  231,088 — 12.7  per  cent. 
Indians  (largely  civilized  tribes),  920,860 — 50.9  per  cent.  Mestizos 
(descendants  of  European-Indian  marriages),  486,018 — 26.7  per  cent. 
African  negroes,  3,945 — .21  per  cent.  Wild  Forest  Indians  (includ- 
ing those  elements  not  classified),  170,936  or  9.4  per  cent.  The 
white  population  is  mainly  descended  from  the  early  Spanish  adven- 
turers. The  foreign  population  is  about  7,425,  of  whom  2,072  are 
Peruvians.  There  are  also  some  European  business  men  and  their 
families,  some  Spanish  and  Portuguese  Americans. 

Brazil. — Population  (1908)  17,318,556.  The  population  consists  of 
descendants  of  early  settlers  and  of  their  marriages  with  the  various 
elements  that  have  inhabited  Brazil;  European,  principally  of  Latin 
origin;  native  Indians;  Negroes  (chiefly  mixed  blood).  All  of  the 
foregoing  are  greatly  mixed  and  there  is  no  color  line  in  Brazil. 
The  division  of  races  is  chiefly  geographical;  along  the  coasts  the 
predominating  element  is  the  white  and  negro;  in  the  central  and 
northeastern  parts  the  Indian  cross  is  marked.  The  population  ac- 
cording to  the  Statesmen's  Year  Book  (unofficial  estimate  of  1905). 
was  divided  as  follows :  whites  6,302,198 ;  mixed  blood  (Mestizos) 
4,638,495;  Africans  2,097,426;  Indians  1,295,796. 

Immigration  1835  to  1913,  3,038,664.  For  the  period  1820-1907, 
2,561,482.  Of  these  there  were :  Italians  1,213,167 ;  Portuguese  634,- 
585;  Spanish  286,646;  German  93,075;  English  11,068.  The  Ger- 
mans have  settled  chiefly  in  the  extreme  southern  part  of  the  re- 
public, while  the  Italians  are  chiefly  represented  in  Sao  Paulo.  The 
typical  immigration — 1913:  There  were  192,684  immigrants.  The 
largest  number  were  Portuguese,  75,665;  Spaniards  40,540;  Italians 
30,375;  Eussians  8,375;  Syrians  10,568;  German  7,356;  Austro- 
Hungarian  2,218;  English  706;  Japanese' 7,122;  French  1,420. 

Chile. — Population  3,551,703 — 11  per  square  mile.  There  are  three 
l)riucipal  elements :  White,  Europeans  and  Creoles  of  white  extrac- 
tions, representing  30  to  40  per  cent.  Mestizos  (mixed  white  and 
Indians)  50  to  60  per  cent.  Indians,  the  balance  20  to  30  per  cent. 
Foreigners  about  150,000.  These  are  divided  as  follows:  Peruvians 
28,000;  Bolivians  23,000;  Spaniards  20,000;  French  10,000;  Germans 
12,000;  Italians  15,000;  English  11,000.  Miscellaneous  inhabitants 
make  up  the  rest.  Immigration  is  not  large.  There  are  some  for- 
eign colonies,  notably  that  of  the  Germans  at  Valdivia  in  southern 
Chile.  On  the  whole,  though,  the  percentage  of  foreigners  is  not 
large. 


APPENDIX  543 

Colombia. — Population  (1912)  5,4To,961.  The  population  of  Colom- 
bia is  generally  divided  as  follows :  white  10  per  cent. ;  Mestizos 
(white  and  Indians)  40  per  cent.;  Indian  15  per  cent.;  Negroes  35 
per  cent.  In  the  last  group  are  also  included  the  mixture  of  In- 
dians with  Negroes  and  of  Negroes  with  Mestizos.  The  whites  are 
chiefly  the  descendants  of  the  early  Spanish  settlers  who  have  not 
intermarried  with  the  other  classes.  Of  foreigners  there  is  a  com- 
paratively small"  group,  chiefly  engaged  in  business.  They  are  Eng- 
lish, French,  Italian,  German  and  Spanish.  The  Negroes  are  gen- 
erally found  in  the  coastal  regions.  The  Indians  live  in  the  interior, 
principally  in  the  mountain  districts.  Immigration  has  not  been 
large,  although  the  republic  offers  many  opportunities  for  col- 
onists. 

Costa  Rica. — ^Population  (1913)  410,981.  The  majority  of  the  in- 
habitants are  descendants  of  Spaniards  (natives  of  Galicia)  who  were 
the  early  settlers.  The  percentage  of  Mestizos  (mixed  blood)  is  not 
large,  as  the  Costa  Eicans  have  maintained  their  social  purity.  The 
native  Indians  number  about  4,500  and  are  found  chiefly  near  the 
Nicaragua  boundary.  There  are  about  25,000  West  Indian  Negroes 
who  live  chiefly  in  the  Province  of  Limon  and  are  engaged  in  banana 
culture.  The  foreigners  number  from  ten  to  twelve  thousand  and  are 
mainly  Spanish,  Italian,  German,  British  and  French.  The  Span- 
ish and  German  predominate. 

Ciiha. — Population  (1914)  2,469,125,  or  55.9  per  square  mile.  The 
native  Cubans  represent  but  88  per  cent,  of  the  total,  aliens  12  per 
cent.  In  1911  the  native  population  was  1,961,896;  foreigners  261,- 
388.  There  are  two  large  divisions :  viz.,  whites  71.9  per  cent.,  colored 
28.1  per  cent.  Of  the  latter  the  mulattoes  and  blacks  predominate; 
there  is  also  a  small  percentage  of  yellow.  Foreigners :  Chiefly  Span- 
ish, although  the  English,  Americans,  French,  Italians  and  Germans 
are  represented.  Immigration  (1912)  total  38,296:  Spanish  30,660; 
North  American  2,884;  Jamaicans  1,269.  In  1913  total  43,507;  of 
these  34,278  were  Spaniards. 

Ecuador. — Population  1,500,000.  The  population  of  Ecuador  con- 
sists chiefly  of  whites  and  Mestizos.  The  white  population  numbers 
100,000  to  120,000.  The  Mestizos  (or  mixed)  350,000  to  450,000. 
There  is  also  a  group  of  uncivilized  Indians  or  Aucas  numbering 
90,000,  besides  pure  Negroes  7,831.  Included  in  the  Mestizos  are  some 
mixed  white  and  blacks — about  37,000.  Of  foreigners  there  are  6,000 
to  8,000,  of  whom  5,000  are  Latin  Americans  from  other  republics. 
The  Europeans  (English,  French,  Germans,  Italians,  Spanish, 
etc.)  represent  about  1,500;  North  Americans  500  to  800;  Chineaf 
400. 


544  APPENDIX 

Guatemala. — Population  2,119,165.  The  population  of  Guatemala 
consists  largely  of  two  classes — Mestizos  (mixed)  and  Indians.  The 
Mestizos  represent  40  per  cent.,  the  Indians  about  60  per  cent.  The 
pure  descendants  of  the  European  settlers  are  very  small  in  number. 
The  European  nations  are  represented  chiefly  in  commerce  and  the 
most  important  element  is  the  German  colony,  which  is  engaged 
in  coffee  raising  and  banking.  There  are  some  French,  Italians, 
North  Americans,  Spanish,  etc. 

Faih".— Population  (1912)  2,500,000.  The  people  of  Haiti  are 
principally  Negroes.  There  is  a  large  group  of  mulatto  Haitians, 
descendants  of  French  settlers.  The  foreigners  number  about  5,000, 
representing  chiefly  other  Latin  Americans,  particularly  from  Santo 
Domingo.  The  white  foreigners,  including  Europeans  and  North 
Americans,  total  500.     The  immigration  into  Haiti  is  very  small. 

Honduras. — Population  (1911)  566,017.  The  population  of  Hon- 
duras consists  largely  of  the  Mestizos,  or  mixed  element.  The  pure 
whites  represent  a  very  small  percentage.  Of  Indians,  there  is  a 
large  representation,  practically  all  civilized.  The  Sambos  (blacks 
and  Indians  mixed)  number  about  6,000.  Of  foreigners  the  number 
is  comparatively  small.  The  European  nations  are  represented  in 
the  principal  places  by  business  men,  and  there  are  also  some  Ameri- 
cans, particularly  along  the  Atlantic  Coast.  Immigration  is  very 
small. 

Mexico. — Population  (1912)  15,501,684.  Pure  whites  and  nearly 
pure  19  per  cent. ;  Mestizos  43  per  cent. ;  Indians  38  per  cent.  The 
whites  are  Europeans  and  descendants  of  Europeans,  besides  de- 
scendants of  early  settlers  who  have  not  intermarried  with  the  na- 
tives. There  is  a  considerable  foreign  population  in  Mexico.  The 
Europeans  are  largely  represented,  particularly  the  Germans,  French, 
English  arid  Italians.  North  Americans  until  1912  were  also  numer- 
ous. In  1910  the  number  of  foreigners  was  as  follows :  Spanish 
2^,541;  Guatemalans  21,434;  Americans  20,679;  Chinese  13,203; 
British  5,264;  French  4,604;  Germans  3,827;  Cubans  3,418;  Turks 
2,907;  Italians  2,595;  Japanese  2,216;  Arabians  1,546;  Danish 
613. 

Nicaragua. — Population  650,000,  or  12.2  per  square  mile.  The 
population  of  Nicaragua  must  be  considered  from  the  geographical 
standpoint.  Western  half:  Chiefly  Mestizos,  of  Spanish  and  Indian 
extraction.  A  comparatively  small  percentage  of  the  people  are  of 
pure  Spanish  extraction.  There  are  many  Indians.  In  the  eastern 
half  there  are:  Mosquito  Indians,  Zambo  Indians  (mixed  black  and 
Indian),  Negroes,  some  Mestizos  and  some  North  Americans.  The 
number   of  uncivilized   Indians    is   probably   not   over   20,000.     The 


APPENDIX  545 

foreigners  in  the  republic  are  chiefly  Europeans,  including  German?, 
Spaniards.  Italians  and  French.  There  are  also  some  Americans  who, 
like  the  Europeans,  are  engaged  in  trade  and  development.  The 
total   is   not   over   2,500. 

Panama. — Population  (1912)  336,742.  The  population  of  Panama 
is  chiefly  mixed.  It  includes  Mestizos,  descendants  of  the  Spanish 
settlers,  besides  Indian  and  Negro  elements.  The  Indians  are  found 
chiefly  in  Western  Panama.  Of  foreigners  there  are  residents  of 
all  European  nations  and  a  growing  body  of  North  Americans.  The 
Chinese  number  3,500.  There  are  about  25,000  British  subjects, 
chiefly  West  Indians,  who  are  engaged  mainly  in  tilling  the  banana 
fields. 

Pam^-wa?/.— Population  (1912)  800,000.  The  population  of  Para- 
guay consists  largely  of  Mestizos.  The  various  elements  which  have 
contributed  to  this  are  Indians,  Europeans  (chiefly  Spanish)  and 
Negroes.  Among  the  Indians,  the  Guarani  strain  is  predominant. 
In  1911  there  were  20,000  to  30,000  foreigners  in  Paraguay.  Of 
these,  the  Argentines  numbered  9,300;  Italians  15,000;  Germans 
3,000;  French  1,000;  Brazilians  1,400;  Spanish  1,100;  English  400. 
The  immigration  is  small.     In  1913  it  totaled  1,440. 

Peru.— Population  (1913)  4,600,000.  The  population  of  Peru  is 
divided  as  follows:  Whites  15  to  20  per  cent.;  Mestizos  (Cholos  and 
Zambos)  20  to  25  per  cent. ;  Indians  50  to  55  per  cent. ;  Negroes 
]  to  2  per  cent.  The  Peruvian  population  is  quite  mixed  in  char- 
acter, but  the  Spanish  influence  is  very  strongly  felt.  There  are  two 
principal  classes  of  Indians,  the  "uplands"  and  the  "coast"  tribes, 
the  latter  being  known  as  "Cholos."  The  European  nations  are  rep- 
resented principally  in  Lima  and  Callao.  The  European  business 
men  are  of  English,  Spanish,  German,  French  and  Italian  extrac- 
tion. An  increasing  number  of  Americans  are  settling  in  Peru,  espe- 
cially in  the  miniijg  districts. 

^aZvacZor.— Population  (1914)  1,225,835.  The  population  of  Sal- 
vador consists  chiefly  of  Mestizos,  Indians,  and  foreigners.  The  pro- 
portions are  about  as  follows :  whites  (consisting  of  foreigners  and 
Creole  residents)  10  per  cent. ;  Mestizos  (mixed  white  and  Indians) 
50  per  cent. ;  Indians  about  40  per  cent.  Those  of  pure  white  blood 
number  perhaps  3  per  cent.  The  European  nations,  especially  France, 
Germany  and  Italy,  are  represented  in  the  larger  cities  where  mi;ch 
business  is  in  the  hands  of  foreigners.  There  are  also  some  English, 
Italians  and  other  nationalities. 

Santo  Domingo. — Population  (1913)  708,000.  The  population  of 
Santo  Domingo  consists  chiefly  of  Creoles  of  pure  Spanish  descent 
and  of  mixed  European,  African  and  Indian  blood.    As  to  foreigners, 


546  APPENDIX 

there  are  many  Syrians  and  Turks,  who  are  chiefly  engaged  in  the 
dry  goods  trade.  There  are  also  some  representatives  of  the  Euro- 
pean nations  who  are  engaged  in  trade.  These  are  German,  French, 
Italians,   Spanish,  English  and   some   Americans. 

Uruguay. — Population  (1913)  1,279,359.  The  population  of  Uru- 
guay consists  largely  of  natives  of  the  Indian  type.  Mestizos  and  for- 
eigners. Among  the  latter  the  Italians  and  Spanish  are  in  the 
majority.  In  northern  Uruguay  the  Brazilian  element  enters  into 
the  population.  Foreigners  (1908)  numbered  181,222.  These  were 
as  follows :  Italians  62,357 ;  Spanish  54,885 ;  Brazilians  27,789 ;  Argen- 
tines 18,600;  French  8,341;  British  1,324;  Swiss  1,406;  German  1,112; 
all  others  5,408.  There  is  a  considerable  immigration,  but  largely 
of  the  casual  sort,  consisting  of  laborers  who  come  for  a  period  but 
return  to  Europe.  In  1913  the  immigration  was  261,148.  In  1912 
the  emigration  was  232,644;  typical  emigration  (1913),  Spanish 
14,418 ;  Italian  12,805 ;  Brazilian  1,173 ;  French  1,398 ;  German  1,139 ; 
English   1,248. 

Venezuela. — Population  (1913)  2,755,685.  The  population  of  Ven- 
ezuela consists  largely  of  Mestizos,  those  of  mixed  blood.  There  is 
considerable  African  blood  besides  Indians.  The  whites  are  chiefly 
descendants  of  European  nations,  especially  Spanish.  The  per- 
centage of  the  Mestizos  is  about  65  to  75  per  cent. ;  whites  of  Euro- 
pean descent  about  10  to  15  per  cent.,  and  of  the  rest  about  10  to  20 
per  cent.  The  European  nations  are  represented,  especially  in  the 
large  centers.  The  number  of  foreigners  is  about  55,000.  The  most 
important  elements  are  the  Spanish,  Italian,  French,  German  and 
English.  There  is  a  small  number  of  North  Americans.  Immigration 
in  1912  was  9,672. 


PAN-AMERICAN  AFFAIRS  IN  COLLEGES  AND 
UNIVERSITIES 

Below  is  given  a  list  of  colleges  and  universities  in  the  United 
States  which  have  special  courses  for  the  study  of  the  Latin  Ameri- 
can countries  from  various  standpoints.  In  addition  to  the  universi- 
ties listed,  other  institutions  of  learning  are  constantly  adding  simi- 
lar courses  upon  one  or  more  phases  of  the  problem. 

University  of  California. — 

History  of  Spain  and  Spanish  America.  Economic  geography 
of  the  Pacific  Ocean  countries.  Foreign  relations  of  the 
United  States  in  the  American  field. 


APPENDIX  547 

Columbia  University. — 

Mexican  Archeology,  Archeology  of  northwestern  South  Amer- 
ica, Ethnography  of  America  and  Siberia. 
Hispanic  institutions  and  culture. 
Spanish  colonization  in  the  United  States. 
Colonial  Latin  America. 
The  Latin  American   republics   (general). 
Relations  of  the  United  States  and  Latin  America. 

University  of  Denver. — 

Summer  school  course  on  South  America  of  today   (historical 
and  geographical). 

Harvard  University. — 

Economic  course  in  Latin  America. 

Course  on  Latin  American  history  (postponed  until  1915-1916). 

American  diplomacy. 

University  of  Illinois. — 

History  and  politics  of  Latin  America. 

Leland  Stanford  Junior  University. — 
Latin  American  History. 
History  of  Mexico   and  early  California. 
History  of  Brazil. 

Peabody  College. — 

(Nashville,  Tenn.) 
Summer  school  course  on  Latin  America,  language,  commercial 
and   industrial   geography,   and   people. 

University  of  Pennsylvania. — 

United  States  and  Latin  America. 

University  of  Texas. — 

History  of  Latin  America. 

University  of  Wisconsin. — 

Latin  American  political  institutions. 

Yale  University. — 

South  American  history,  commerce,  and  geography. 

University  of  Cincinnati. — 

Spain  and  Spanish  America. 


548  APPENDIX 

University  of  Mississippi. — 

Summer  school  course  on  History  and  Geography  of  South 
America. 

^Northwestern  University. — 
(Evanston,  111.) 
Geography  of  South  America. 

University  of  Texas. — 

American  diplomacy  (alternate  years). 

Similar  course  on  constitution,  governments  and  modern  polit- 
ical conditions  in  the  leading  South  American  countries. 

Physical,  political  and  industrial  geography  of  Mexico,  Central 
America,  and  the  West  Indies.  (Not  given  until  1916-1917 
and  will  later  include  all  of  Latin  America.) 

Comparative  constitutional  law  includes  study  of  Brazil,  Ar- 
gentina, and  Chile. 

Foreign  Trade  (includes  Latin  America). 

University  of  Virginia. — 

Summer  school  courses  on  Latin  American  social  development; 
international  relations,  with  emphasis  on  international  peace. 

University  of  Wyoming. — 

Summer  school  course  on  Spanish  American  history  and  present- 
day  conditions. 

Emerson  Institute. — 

(1740  P  Street  N.  W.,  Washington,  D.  C.) 
Courses  of  three,  six,  and  nine  months.     Languages,  geography, 
resources,  etc. 


BEANCH  OFFICES  OF  THE 
BUREAU  OF  FOREIGN  AND  DOMESTIC  COMMERCE 

New  York  City,  N.  Y.,  Room  409.  LTnited   States  Custom  House. 

Boston,   Mass,   Eighteenth  Floor,   United   States   Custom   House. 

Chicago,  111.,  504  Federal  Building. 

St.  Louis,  Mo.,  Room  402,  Third  National  Bank  Building. 

Atlanta,  Ga.,  Room  521,  Post  Office  Building. 

New  Orleans,  La.,  Room  1020,  Hibernia  Bank  Building. 

San  Francisco,  Cal.,  Room  366,  United  States  Custom  House. 

Seattle,  Wash.,  Room  922,  Alaski  Building. 


APPENDIX  549 


COOPEEATIVE  DISTEICT  OFFICES 

Cleveland  Chamber  of  Commerce,  Cleveland,   Ohio. 
Cincinnati  Chamber  of  Commerce,  Cincinnati,  Ohio. 
Assistant  General  Freight  Agent,  C.  K  O.  &  T.  P.  Ry.  Co.,  Cincin- 
nati, Ohio. 
Los  Angeles  Chamber  of  Cominerce,  Los  Angeles,  Cal. 
Detroit  Board  of  Commerce,  Detroit,  Mich. 
Philadelphia  Chamber  of  Commerce,  Philadelphia,  Pa. 
South  American  Agent,  Southern  Ry.  Co.,  Chattanooga,  Tenn. 


INDEX 


Abbreviations,  in  Spanish,  148 
Acceptances,   194,   200 
Accounts,   collection   of,   208 
Adaptability,    factors    to    consider, 
16-23 
importance  of,  297 
to   Latin   American   requirements, 
16 
Addresses,  of  dealers.     Sec  Mailing 

lists,  257 
Advances  of  cash,  199 
Advertising,  American  ideas  in,  260 
contracting  for,  275 
definite  purpose  in,  261 
essentials  of,  260 
expert  advice  desirable,  272 
export  journals,  7 
factors  in,  270 
kinds  of,  261 
liberal  policy  in,  56 
local,  273 

in  newspapers,  274 
novelties,  signs,  etc.,  262-263 
to  open  accounts,  272 
requisite  to  success,  264 
things  to  avoid  in,  264 
uses  for,  261 
Advertising    agencies,    advice    desir- 
able,  274-275 
how  obtained,  275 
Advertising  matter,  for  salesmen,  90 

translation  of,  56 
Agencies,    appointment    of,    factors 
in,  67 
distributing,  importance  of,   104 
inspection  of,  55 
Agents,   general,   advantage   of,   33, 
104 
appointment  of,  54 


Agents,  caution   needed  in  appoint- 
ment  of,   106 
how  obtained,  105 
instruction  of,  55 
visits  of,  55 
local,  advantage  of,  108 

arrangements  with,  108,  109 

cooperation  with,  108 

definite    understanding    needed, 

108 
duties  of,  109 
factors  affecting,  107 
liability  of,  108 
population  in  relation  to,  113 
Agreement,    lawful,    observance    of, 
56 
regarding  prices,  42 
Aids   to   study   of   export   problems, 

464-5 
Ambassadors      and      Ministers,      to 
Latin    America    from    U.    S., 
512 
to    U.    S.    from    Latin    America, 
512,  513 
American  Academy  of  Political  and 
Social    Science,    meeting    of, 
244 
American  Consul.     See  Consuls 
American  export  methods,  contrast- 
ed with  European,  52 
exporters,  51-52-53-54 
misdirected,   51 
where  successful,  53 
American  International  Corporation, 

purpose  of,   227 
American      Manufacturers      Export 
Association,    purpose   of,   341 
Argentine,  area  of,  393 
articles  needed  in,  395 


551 


552 


INDEX 


Argentine,  best  methods  to  canvass, 
395 

business  conditions  in,  11 

currency,  392 

foreign  commerce  of,  396 

industries  in,  394-5 

language  of,  392 

mining  in,  395 

population  of,  394 

principal  cities  of,  395 

purchasing  power  of,  394 

railroads  in,  394 

resources  of,  394 

statistics  of,  393 
Argentine  Year  Bool',  16 
Analysis,  importance  of,  12 

of  market  conditions,  55 
Atlases    and   gazettes,    list   of,    472, 

473 
Attractiveness,   importance   of,   300 
Average,  Marine  Insurance,  free  of 
particular,  169 
general,  168 

Baggage,  personal  attention  to,  110 
Banks,  aid   of,  31 

charges  for  collections,   197-198 

credit    information    supjilied    by, 
205 

drafts  on,  collection  of,  190 

European,  215 

foreign  loans  by,  225 

German,  success  of,  224 

influence  of  foreign,  215 

interest  rates  charged  by,  196 

Latin  American  branches  of  Amer- 
ican, 225 

Latin  American,  list  of,  506-509 

list  of  New  York,  504 

means   of   information,   29 
Barrett,  Hon.  John,  336 
Bills  of  lading,  definition  of  export, 
■  177 

exactions  of  banks,    193 

how  prepared,  192 

indorsements,  18 

interior,  objection  to,  178 


Bills  of  lading,  minimum,  184 
required  by  banks,  178 
"to  order,"  193 
' '  Bills  on  London, ' '  importance  of, 

216 
Bolivia,  area  of,  397 
articles  needed  in,  399 
best  method  to  canvass,  398 
business  conditions  in,  11 
currency  of,  396 
foreign  commerce  of,  396,  397 
industries  in,  399 
language  of,  396 
mining  in,  398 
population  of,  397 
principal  cities  in,  398 
purchasing  power  of,  397 
railroads  in,  399 
resources  of,  398 
statistics  of,  400 
Books,  complete  list  of,  465-500 
for   export   department,   32 
•  about    individual    countries,    479- 

481 
about  Latin  America,  474-477 
as  means  of  information,   27 
Brazil,     general     description,     401- 

404 
Bureau    of    Foreign    and    Domestic 
Commerce,   branch   offices   of, 
318 
cooperation    with    local    organiza- 
tions, 30 
divisions  of  tariff,  236 
publications  about  tariffs,  237 
publications     of,      322-323,     489- 

495 
service  of,  321 
Business  customs,  countries  grouped 
according  to,  8 
Latin  American,  132,  133 
Business    houses,    Latin    American, 

132 
Business  Men's  League  (St.  Louis), 

foreign  trade  work  of,  342 
Business     organizations,     assistance 
of,    in   cooperative   effort,   40 


INDEX 


553 


Business     organizations,     assistance 
of,  to  members,  347-351 
cooperation  with   Latin  American 

trade  bodies,  353 
delegations  to  Latin  America,  354- 

355 
European,  45 
in  Latin  America,  352 
means  of  information,  26 
Business       Training       Corporation, 

course  of,  367 
Buyers,  of  American  products,  126 

Cable  codes,  91 

list  of,  465-466 
Capital,    American,   distribution    of, 
528 

exporters',  importance  of,  19 
Catalogs, 

circulation  of,  248 

code  words  in,  248 

desirability    and    convenience    es- 
sential, 245 

distribution  of,  by  Consuls,  330 
by  export  houses,  68 

duty  on,  249 

essentials   of,   240-241 

houses  judged  by,  240  ' 

how  Consuls  use,  331 

how  prices  are  quoted,  244 

in  consular  libraries,   329-330 

metric  system  in,  244 

prices  and  discounts  in,  246 

scientific  accuracy  essential  to,  242 

selling  points  featured  in,  243 

Spanish,  Portuguese,  French,   240 

supplements  to,  242 

technical  distribution  of,  249 

use   of,   239 

use  of  terms  in,  243 
Central  America,  business  conditions 

in,  11 
Chamber  of  Commerce  of  U.  S.  A., 

purpose  of,  342 
Changes  in  product,  need  for,  24 
Character,  of  Latin  Americans,  130- 
131 


Character,  of  salesmen,  102 
Chicago    Association    of    Commerce, 

membership  in,  340 

purpose  of,   339-340 
Chile,    business   conditions    in,    11 

general  description  of,   405-409 
C.  I.  F.  quotations,  251 
C.  I.  F.  &  E.  quotations,  251 
Circular  letters,  141-142 
Claims,   how  adjusted,   211 
Clark  University  Conference,  trans- 
actions of,  345 
Class  demand,  importance  of,  24 

study  of,  35 
Clearance   of   samples,    under   bond, 
110 

details  of,  109 
Climates  of   Latin  America,  Argen- 
tine, 389 

Bolivia,  389 

Brazil,   389 

Chile,  390 

Colombia,  390 

Costa  Rica,  391 

Cuba,  391 

Ecuador,  390 

Guatemala,  392 

Haiti,  391 

Honduras,  391 

Mexico,   392 

Nicaragua,  391 

Panama,  392 

Paraguay,  390 

Peru,  390 

Salvador,  392 

Santo  Domingo,  391 

Uruguay,  390 

Venezuela,  391 
Climate,      effect      of,      on      morals, 

99 
Clothing,  importance  of,  94 

kinds  of,  94 

suggestions  for,   119 
Clubs,  devoted  to  Pan- America,  343 

lists  of,  531-532 
Codes,  registration  of  addresses,  176 

used  on  invoices,  146 


554 


INDEX 


Collections,   legal,   211 

methods  of,  of  open  accounts,  208 

technique  of,  209 
Collection  agencies,  work  of,  210 
Colombia,  business  conditions  in,  10 

combination   of   manufactures   in, 
42 

general   description   of,   410-414 
Combination     shipments,     how     for- 
warded,  180 
Commerce  with  Latin   America,   de- 
tailed statistics,  529 

imports   and   exports,   12 
Commercial    agents,    work    of,    315, 

316 
Commercial     attaches,     correspond- 
ence with,   317 

work  of,  315-317 
Commercial  registration,   135 
Commerce  reports,  control  of,  319 
Commission  merchants,  export,  517 
Competition,   foreign,   24 

need  for  considering,  18 
Construction      companies,      business 

with,  37 
Consular    invoices,    certification    of, 
177 

described,  177 

requirements  of   each  country  as 
to,  520-522 

samples  for,  110 
Consuls, 

advertisements  of,  331 

assistance  to  travelers,  329 

catalogs  distributed  by,  330 

catalogs  to,  329 

conference  with,  97,  333 

cooperation  with,  329 

duties  of,  325-326 

facilities  of,  324,  325 

letters  to,  26,  326 

list  of,  522,  523 

requests  of,  328 

services  of,  324 

various  countries,  327 
Contracts,  with  governments,  139 
Conversion  of  money,  510 


Cooperative  effort,  described,  38 
among  manufacturers,   32-33,   40- 

41-43 
outline  of,  39 
principle  of,  38 
Cooperative  managers,  work  of,  21 
Coordination,  lack  of  effort,  27 
Corporations,  business  with,  38 
Correspondence, 
aids  in,  466 

attention  to  detail  of,  139 
faults  of,   139 
filing  of,   146 
"form"  letters,   141 
importance  of,  34 
languages,  139,  140 
Portuguese  used  in,  140 
promptness  essential,  140 
sales  by  mail,  143 
signatures,  140 
translations,  139 
with  Latin  America,  137 
Costa   Eica,    business   conditions   in, 
11 
general  description,  414-417 
Course   of   lectures,   for  commercial 

organizations,  357 
Courses  of  reading,  for  secretaries, 

357 

Credit,  extended  by  export  house,  74 

extension  of   ' '  open  credit, ' '   206 

Latin  American  governments,  207 

refusal  of,  to  unknown  firms,  207 

Credit  information, 

how  foreign  reports  differ,  205 
how  obtained,  203 
banks,  domestic,  204 

Latin  American,  204 
mercantile  agency  reports,  203- 

204 
references,   204-205 
salesmen,  206 
Credits, 

granted,  by  bankers,  223 
infrequeney  of  bankruptcy,  203 
in  Latin  America,  201 
percentage  of  losses,  203 


INDEX 


555 


Credits,  why  dealers  require,    202 
Criticism  of  American  methods  un- 
warranted, 8 
Cuba,  business  conditions  in,  9 

general   description,  417-420 
Currency,  in  Latin  America,  213 
Customs,  importance  of  regard  for, 
130 
business  hours,  132 
study  of,  102 
Custom   house   clearance,   documents 
required,  189 
requirements  for,  189 
Custom  house  brokers,  assistance  of, 
110 

Dealers,  attitude  of,  126 

list  of,  90 
Demand,  creation  of,  24 

importance  of  class  of,  20 
Demonstration,  need  for,  301 
Department    of    Commerce,    branch 
oflSces  of,  26 
Washington  office  of,  26 
Department  stores,  128 
Desirability,  fact  to   consider,   18 
Details,  importance  of,  23 
Diseases,  in  Latin  America,  121 
Dictionaries,       technical,       467-468, 

469 
Directories  of   Latin  America,   498- 
504 
Bureau  of  Foreign  and  Domestic 

Commerce,  503-504 
World's  Trade,  504 
Discounts,  simple  preferred,  244 

quoted  separately,  246 
Disputes,    importance   of   adjusting, 
211 
settled  by  correspondence,  211 
Distances  to  principal  cities,  510 
Documents,   shipping,   how   handled, 
186 
importance  of,  186 
Dollar  exchange,  215 
Domestic    trade,    development    and 
expansion  of,  15 


Dominican  Republic,  business  condi- 
tions in,  11 

general   description  of,  420-423 
Drafts,  acceptance  of,  199 

at  sight,  191 

for  acceptance,  195 

charges  to  include,  197 

"clean,"  191 

collections  of,  195 

defined,  190-191 

discount  of,  198 

documents  in  connection  with,  192 

how  accepted,  194 

how  drawn,  194 

how  forwarded,   195 

important  details,  195 

interest  and  commissions  on,   196 

made  in  duplicate,  192 

sale  of,  198 

time,  191 

"to  order,"  191 
Drawback  law,  238 
Drawbacks,  how  obtained,  238 
Duties,  on  advertising  matter,  262 

packing  affected  by,  161 

E.  &  O.  E.,  meaning  of,  176 
Ecuador,  business  conditions  in,   11 

general       description      of,       423- 
427 
Efficiency,  how  to  obtain,  22 
Effort  misdirected,  98 
Emigration,  American,  desirable,  50 

European  commerce  benefited  by, 
49 
Encyclopedias,   lists  of,   465 

use  of,  in  study  of  Latin  Amer- 
ica, 15 
European  aid  to  merchants,  44 
European  commission   houses,   34-37 
European  Export  Associations,  45 

aid  to  merchants,  45 

principal  organizations,  45 

service  of,  45 
European     export     shipments,     how 

financed,  48 
European  financial  methods,  47 


556 


INDEX 


European  manufacturers,  study  and 

training,  52 
European   methods,   34-43 

in  Latin  America,  47 
European  trade  experts,  how  devel- 
oped, 48 
European  War,  influence  of,  2 
Exchange  brokers,  N.  Y.,  list  of,  504 
Expenses,  94 

of  traveling,  118 
Expert  advice,  desirable,  33 
Experts,  need  for,  51 
Export  agents,  cooperation  with,  80 

duties  of,  78 

how  to  obtain,  79 

other  functions,   78 

payment  of,  79 

services  of,  78 

questions  to  ask,  80 
Export  commission  houses, 

advantages  of  trading,  59 

aid  to  Latin  American  dealers,  58 

agi'eements  with,   69 

banking  documents  of,  76 

catalogs  for,  68 

commission  charged  by,  77 

cooperation  with,   68-77 

correspondence   with,   69 

credit  extended  by,  74 

European,  34 

expert  staffs  maintained,  61 

factors  in  appointment,  67 

finances  of,  62 

highly  developed,  61 

how  they  increase  trade,  59 

how  they  trade,  58 

how  they  transact  business,   59 

importancij  of,  57 

increasing      established      business 
with,  72 

inquiries,   how  handled,   71 

keeping  account  of,   76 

lack   of   success,    66 

local  agents  of,   68 

marketing  goods  through,  63 

means  of  information,   27 

names  of,  61 


Export  commission   houses,    natural 
field  of,  59 

objections  to,  71 

organization  of,  60 

problems  of,  73 

profits  of,  77 

protection  of,  70 

results  from,  66 

risks  of,  74 

sales   on   open   account,  58 

selection   of,   64 

service   to   American   manufactur- 
ers, 63 

superiority  in  certain  lines,  71 

travelers  for,  60 

understanding  with,   65 

use    of    previous    correspondence 
with,    69 

what  they  are,  57 

where   located,   60 
Export     companies,     formation     of, 

40 
Export  department,  heads  of,  41 

management  of,  297 

manager    of,    21 

organization  of,  21 
Export  efforts,  not  coordinated,  27 
Export  journals,  character  of,  267 

effective  advertisements  in,  272 

features  of,  29 

how  to   determine  value  of,  269- 
270 

how  to  obtain,  30 

influence  of,  267 

proof  of  circulation,  270 

readers  of,  267 

value  of,  28 

various  kinds,  268 
Export  managers,  how  to  obtain,  21 

qualifications  of,  21 

salary  of,  21 
Export   Managers'   Bureau,  purpose 

of,  355 
"Export     Trade     Directory,"     de- 
scribed,  465 
Export  trade  journals,  means  of  in- 
formation,  26 


INDEX 


557 


Exports,    from    Latin    America    to 
U.  S.,  13 

Expositions,     Commercial     Museum, 
Brazil,  356 
Cuba,  356 
cooperative,  356 
value  of,  35 
Express   companies,   aid   in    foreign 
business,  32 
as  forwarding  agents,   180 

Factors  necessary  to  consider,   17 
Fairs   and   markets,    description   of, 

129 
Financial  conditions  in  Latin  Amer- 
ica,  213 

acceptance  under  Federal  Eeserve 
Law,  219 

American   banks   in   Latin   Amer- 
ica, 225 

banking  practice,  223 

"bill  on  London,"  216 

commercial    banking,    223 

denomination     of     European     fi- 
nances,  216 

direct  bill  of  exchange,  217 

dollar  exchange,  215-218 

draft  on   New  York   at   discount, 
217 

European- American        banking 
method,  217 

European  banks'   success,   222 

Federal  Reserve  Law,   219-221 

foreign  banks  in,  215 

governmental   supervision,   224 

influence  of  foreign  banks,  215 

loans  and  discounts,  223 

monetary  system,  213 

opportunities  for  American  banks, 
225 

publications  concerning,  227 

waning  European  influence,  224 
Financing  shipments,  how  done,  221 
Finish,  factor  of  importance,  299 
Follow-up  letters,  kind  to  write,  141 

use  of,  141 

tSec  also  Correspondence 


Foreign  competitions,  49 

Foreign    bureaus,    cooperative   with, 

357 
Foreign    dealers,    resident   in    Latin 

America,  132 
Foreign      exchange      and      banking, 

books  on,  465 
Foreign  freight  agents,  definition  of, 
179 
quotations  of,  181 
Foreign    freight   forwarders,    duties 
and  advantages  of,  180 
in.  New  York,  515,  516 
Foreign  houses,  New  York  office  of, 

72 
Foreign  trade,  agitation   for,  1 
Foreign  Trade  Association,  work  of, 

342 
Foreign  trade  education,  aVjroad,  362 
basis  of  instruction  in,  365-366 
Business     Training     Corporation, 

367 
cooperation  in,  365 
federal  school  for,  367 
interest  in,  362 
keynote  to,   364 
university  course  in,  362 
in  United  States,  364 
Foreign  trade  organizations,  descrip- 
tion of,  337 
list  of,  338,  339,  340,  341,  342,  343 
"F.  P.  A."  (Free  of  particular  av- 
erage), meaning  of,  169 
Freight  charges,  when  and  how  pre- 
paid, 187 
Freight       forwarders,       advantages 
claimed   for,   180 
bills  of  lading  issued  by,   178 
charges  made  by,  182 
definition    of,    179 
obtaining  quotation  from,  183 
work  of,  179 
Freight  rates,  comparison  of,  311 
how  to  base,  312 
information  about,  312 
ocean,  basis  of,  183 
Funds,  importance  of  sufficient,  01, 


558 


INDEX 


General  average,  meaning  of,  168 
General   importers,   127 
General  stores,  129 
Geography,  books  on,  473 

importance  of,  to  stiulents,  15 
German  banks,  advantage  of,  224 

how  conducted,  224 
Germany 's  export  trade,  46 
Governmental  assistance,  Bureau  of 

Foreign  and  Domestic  Commerce, 
314-315 

Commerce   Beports,  319 

commercial  agents,   316 

commercial  attaches,   315-317 

Consuls,  315 

cooperation      with      organization, 
319-320 

to  exporters,  314 

special  agents,  315 

specialized  information,  318 

Statistical  Division,   315 

Tariff  Division,   315 
Government   publications,   30 
Governments,  business  with,  37 
Group   representatives,   33 
Guatemala,    business    conditions    in, 
11 

general  description  of,  427-430 

Haiti,  business  conditions  in,  10 
general  description  of,  430-433 
Harrisburg   Foreign    Trade    Confer- 
ence, meeting  of,  345 
Health   conditions,   in   Latin   Amer- 
ica, 122 
Holidays,  how  to  use,  302 
importance  of,  301 
list  of,  302,  303,  304 
Honduras,  business  conditions  in,  11 

general  description  of,  433-436 
Hotels,  Latin  American,  charges  of, 
118 

Illinois  Manufacturers'  Ass'n,  co- 
operative work  of,  355 

Importers,  goiioral,  relative  to  job- 
bers,   128 


Importers,  of  Latin  America,  126 

of  special  commodities,   128 
Imports    into    Latin    America,    per- 
centage from  U.  S.,  12 
Indents,  their  initiation,  73 
Individuals,  business  with,  37 
Individual  effort,  result  of,  54 
Individual    buyers,    on    large    scale, 

128 
Industrial  establishment,   128 
Information,     how     to     obtain,     25, 
119 

to  exact,  of  Representative,  99 
Inquiries,  how  handled,  273 

how  to  develop,  273 
Instruction,   Americans   fail    to   ob- 
serve, 51 
Insurance,  against  all  risks,  169 

average,  general,  168 

books  relative  to,  465 

brokers  and  companies  in,  170 

claims  for  loss,  how  filed,  171 

cost   of,   170 

how  to  obtain,  170 

liability  of  companies,  168 

marine,  need  for,  167 

"Open  Policy,"  169 

pilferage,  risks,  170 

precautions  to  take,  169 

values,  how  declared,  170 
International      Trade      Conference, 

meeting  of,  345 
Investment,  influence  of  capital,  6 
Invoices,  cable  code,  use  of,  176 

details  of,  173,  174 

essential  feature  of,  172 

foreign,    how   differ   frOm   Ameri- 
can,  174 

how  affected  by  tariff,  230 

how  to  write,  172,  173,  174 

importance  of,  172 

necessity  for  proper  classification, 
230 

signatures  on,  175 

Jewelry,     manufacturers    cooperate, 
32 


INDEX 


559 


Journals  about  Latin  America,   ad- 
vertising rates  of,  497-498 
complete  list  of,  495-497 
names  and  addresses,  495 

Jiabels,  attractive,  299 
importance  of,  23 
Languages,  importance  of,  137 
Portuguese  for  Brazil,   140 
use  of  other,  140 
Latin   America,   agriculture   in,   5 
area  of,  2 
capital    investment,    influence    of, 

6 
climate  of,  3 

forestry,  opportunities  in,  5 
future   possibilities   of,   5 
general  economic  conditions  in,  6 
grouping  of  countries  of,  accord- 
ing to  business  methods,  8 
in  the  magazines,  30 
mines  and  minerals  in,  4 
physical  characteristics  of,   2 
republics  of,  2 
resources  of,  4 
Latin  American  coins,  equivalent  of, 

511 
Latin  American  conferences,  impor- 
.tance  of,  343 
list  of,  344 
Latin     American     people,     develop- 
ment of,  124 
Latin   American   Trade   Conference, 

meeting  of,  345 
Latin  American  trade  problems, 
knowledge  of  countries  indispens- 
able, 15 
scientific  study  necessary,  14 
short-sighted  policy,  14 
specific  fact  needed,  14 
Law  and  legal  procedure,   in   Latin 

America,  311 
Lecture  course,  for  business  organi- 
zations,  358 
Legal  conditions,  135 
Legal  weight,  definition  of,  160-161 
Letters,  advance,  for  salesmen,  89 


Letters,   attitude   of  Latin   America 
toward,  138 
avoidance  of  technical  terms,  144 
construction  of  sales,  143 
English  letters,  Webster,  141 
examples  of  filing,  146 
follow-up,  141 
general  details  of,  150 
of      introduction,     for     traveling 

salesmen,   88 
proper  filing  of,  145 
training  to  write,   138 
use  of  sales  argument  in,  144 
See  also  Correspondence 
Letters  of  credit,  when  needed,  91 

when  obtainable,  91 
Licenses,  traveling  salesmen  's,  where 

payable,  111-112 
Lighterage,  charge  for,  312 

how  to  obtain  free,  187 
Lighters,    how    freight    is    handled 

therein,  155 
Loading   and   unloading,   how   done, 
154,   155,   156 
to  be  considered   in  packing,   157 
Lough,  W.  H.,  mentioned  as  author- 
ity, 12 

Magazines,  character  of,  275-276 

list     of     those     featuring     Latin 
America,    27 

news  of  information,  7 
Mail,  in  whose  care  sent,  96 
Mailing  detail,  inclosure,  142 

importance  of,   142 
Mailing  lists,  classification  of,  258 

directories,  255 

lists  of  mail  order  houses,  259 

local,  for  directories,  255,  259 

requisite  of,  257-258 

sources  of  names,  254-255-256 

See  also  Trade  lists 
Mail  order  business,  advantages  of, 
278 

catalogs  for,   282-283 

difficulties  in,  286 

direct  parcel  post,  279 


S60 


INDEX 


Mail  order  business,  distribution  of 
catalogs  for,  281 
how  started,  282 

list  of  parcel  post  countries,  286 
Mail  points,  for  salesmen,  90 
Mail  time,  from  N.  Y.  to  principal 

cities,  526 
Managers'    export    department,    co- 
operation, 21 
how  to  obtain,  21 
qualifications,   21 
Manufacturers '   agents,   79 
Manufacturing   for   export,   changes 
in  articles,  24 
attention  to  quotations,  23 
necessity  for  careful,  24 
Markets,     meeting    special     require- 
ments of,  24 
peculiarities  of  different,  24 
and  fairs,  in  Latin  America,  129 
Marks   on   cases,   exchange   of,    166, 
167 
importance  of,   165 
must  agree  with  documents,  165 
what  to  avoid,   165 
what  to  use,  164 
Massachusetts    Trade    Board,    pur- 
pose of,  340 
Medicine  case,  need  for,  123 
Merchants,  export,  57 

Latin     American,     characteristics 

of,  124 
See   also   Export   and   commission 
houses 
Methods,  business,  18-33 

considering  best  methods,  34 
of  European  houses,  34 
merchandising,   127 
Metric    system    weights    and    meas- 
ures, importance  of  using,  244 
use  in  catalogs,  244 
Mexico,  business  conditions  in,   10 
general  description  of,  436,  440 
Mining  companies,  business  with,  37 
Mining   laws,    136 

Monetary     systems,     differences    in, 
204 


Monetary    systems,    fluctuations    in, 
214 
in  Latin  America,  213 
needs  of  value,  214 
Monetary   units   of   Latin   America, 

510 
Money,   differences  in,  92 
method   of  carrying,  91 
Moving  pictures,  value  of,  263 

National    Association    of    Manufac- 
turers, purpose  of,  339 
National  City  Bank,  branches  of,  in 
Latin  America,  225 
work     of,      in     Latin     American 
trade  extension,   31 
National  Foreign  Trade  Conventions, 

purpose  of,  344-346 
National     Foreign     Trade     Council, 

purpose  of,  342 
Nationality,  as  a  factor,  291 
Newspapers,  character  of,  274 
circulation  of,  276 
means  of  information,  27 
Nicaragua,    business    conditions    in, 
11 
general  description  of,  440-444 
Non-investigation  expensive,  97 
Numbers  on  cases,  consecutive,  165- 
166 
importance   of,    165-166 

Open  accounts,  how  to  collect,  208- 
209 
how  to  conduct,   205-206 
when  can  be  opened,  205 
Opportunities,  Latin  American,  36 

for  young  men,  361 
Orders,   careful   attention   to,   essen- 
tial,  23,   151 
effect  of  carelessness  as  to,  152 
observance  of  directions  as  to,  in 

filling,  152 
proper  packing  of,   152 
small,  desirable,  101 
Organizations,  American,  where  suc- 
cessful, 54 


INDEX 


561 


Orpfanizationg,  efficiency  of,  20 
need  for,  22 

Packing,  charge  for  cases,  163 

effect   on,    of    arrival    transporta- 
tion,  156 
of  freight  charges,  162 
of  lightering,  154 
of   marking,   155 
of  shipboard,  154 
of  tariff,   158 
of  temperature,   155 
of  unloading,  154 
of  weights  on,  160 
English  cases,  163 
factors  affecting,  153-154 
how  to  determine,  153 
how  to  measure  cases,  184 
importance  of,   152 
materials  used  in,  163-164 
numbering  of  cases,   164 
protection  against  rust  in,  157 
separation  of  articles  in,  159 
use  of  pulp  cases,  164 
waterproofing  materials  in,  157 
Packing  list,  how  used,   177 
Panama,   business  conditions  in,   10 

general  description  of,  444-446 
Pan-America,  clubs  denoted  to,  343 
Pan-American  Canal,  direct  benefits 
from,   306 
trade  possibilities  resulting  from, 
307 
Pan-American    Commercial    Confer- 
ence, description  of,  344 
Pan-American    Financial    Congress, 

meeting  of,  344 
Pan-American  Eailway,  government- 
al cooperation  with,  309 
purpose  of,  309 
Pan-American    Union,    directors    of, 
236 
home  of,  336 
list  of  publications  of,   487,  488, 

489 
means  of  information  of,  26 
pvblications  of,  335-33Q 


Pan-American    Union,    purpose    of, 
334 

in  trade  development,  335 
Paraguay,  business  conditions  in,  11 

general  description  of,  447,  448 
Parcel  post,  advantages  of,  277 

C.  O.  D.,  284 

delivery  charges  of,   284 

development  of  business  by,  281 

direct  to  consumer,  277 

list  of  countries  using,  286,  525 

measurements  and  weights  in,  285 

in  Mexico,  279 

packing    for,    285 

use  of,  277 

workings  of,  283 
Parts,  extra,  importance  of,  898 
maintaining  stock  of,  299 
need  for,  298-299 
Passport,   how  obtained,   89 

value  of,  89 
Payments,      delay      in,      to      expert 
houses,  74 

terms  of,  how  arranged,   209 
keeping  open  accounts,  209-210 
Permits,  shipping,  how  obtained,  189 

where  used,  188 
Personal  relation,  importance  of,  133 
Presidents,  of  Latin  America,  514 
Personal  element,  important,    100 
Personality,   important,   102 
Peru,  business  conditions  in,  10 

general   description   of,   450-454 
Philadelphia     Commercial     Museum, 
membership  in,  338 

purpose  of,  337 

service  of,  338 
Pilferage,  insurance  against,  17 

protection  against,  170 
Population,  112 

classes  among,   125 

development  of,   124 

distribution  of,  125 
Porto  Eico,  business  conditions  in,  10 
Portuguese  books,  distances,  472 

grammars,  472 

list  of,  473 


562 


INDEX 


Portuguese    language,    where    used, 

140 
Postage,  importance  to  prepay,  143 
rates  of,  to  Latin  America,  143 
reply  coupons,   324 
Power    of    attorney,    how    to    safe- 
guard  it,    136 
importance  of,  136 
Prices,  importance  of  sample,  36 
Prices  and  discounts,  attractiveness 
desirable,  244 
essentials  in  quoting,  247 
necessity  for  maintaining,  246 
provision  for  various  agencies,  248 
separate  prices  needed,  246 
simple  discounts  preferred,  247 
Primage,  meaning  of,  185 
Products,  salable,  in  Latin  America, 

368 
Profits,  future,  v.  immediate  success, 

19 
Prospects,  development  of,  89 
Proximity,  factors  to  consider,  17 
Public    contracts,     factors    to    con- 
sider, 134 
legal   conditions,   135 
opportunities  for,  134 

Quality,  demand  for  high,  6 

requirement      of,      by      different 
classes,  6 
Quotations,  C.  I.  F.,  250 

F.  A.  S.,  252 

F.  O.  B.,  251 

how  to  make,  252 

importance  of,  36-253 

proper,  and  sales,  249 

Eaces,  different  classes  of,  125 

distribution  of,  125 

mingling  of,  125 
Railroad  companies,  as  buyers,  127 

publications  about,  465 
Eailroad  facilities,  effect  of,  310 
Eailroads,  business  with,  37 
Railway,  shipments  by,  how  billg  of 
lading  for  handled,  186 


Railway,  prepayment  of  freight  on, 

187 
Railway  cooperation,  30 
Rates,  steamship,  affected  by  ships, 
184 
from  whom  obtained,  185 
Records,  importance  of  keeping,  145 
References,  American  manufacturers 
should  give,  282 
required    of    agents,    80 
required    of    dealers,    205 
Reply  coupons,  324 
Reports,  practical  form  of,  100 

to  exact,  of  Representatives,  99 
Representation,    advantage   of   com- 
petent, 104 
local,  required,  298 
Retailers,  merchants  frequently  both, 
127 
wholesale  and  retail,  127,  128 
Retail   store,    129 
Requirements,  supplying  of,  56 
Resident  agents  of   foreign  houses, 

78 
Richmond    Latin    American    Trade 

Conference,  meeting  of,  345 
Routes,   shipping,  following  instruc- 
tions of  dealei-s  as  to,  186 

Sales  force,  importance  of,  23 
Salesmen,  advance  letters  for,  89 

advantage  of,  81 

American,  52 

clothing  for,  94 

conference  with  American  Consul, 
97 

correspondence  with,  103 

credentials  of,  89 

difficulty  of  obtaining,  81 

equipment  of,  87 

funds  for,  91 

how  to  obtain,  83 

initial  visit  of,  97 

letters  of  authority  for,  88 

letters  of  introduction  for,  87 

mail,  points  of,  90 

memorandum  for  own  use,  100 


INDEX 


563 


Salesmen,  passport  for,  89 

qualifications  of,  82 

reports  to  be  furnished  by,  99 

things  to  be  avoided  by,  98 

training  of,  85 

treatment  of,   103 

what  they  should  carry,  90 
Sales  methods,   different  kinds  out- 
lined, 33 
Sales  organization,  38 
Sales  trips,  best  time  for,  116 

cooperative,   107 

factors   to   consider,    115-117 

how  to  obtain  information,  115 

how  to  select,  102,  105-106 

in  vacation,  114 

money,  how  carried,  119 

planning  them,   114 

routes  of.     See  Countries 

selection  of  route,  117 

suggestions    for,    115 
Salvador,     business     conditions     in, 
11 

general  description  of,  454-457 
Samples,  bond  for,  110 

clearance  of,  109 

consular  invoices  for,  110 

displayed  in  circulars,  332 

prepayment  of  charges  on,  277 

prepayment  of  duty  on,  332 

sent  by  mail,  277 
Sample  trunks,  character  of,  92 

importance  of,  92 
Santo  Domingo,  business  conditions 
in,  10 

general  description  of,  421-423 
Shipments,    combination    of    small, 
182 

how  to  determine   measurements, 
184 

"to  order,"  194-195 
Shipping,    publications    relative    to, 

189 
Shipping  details,  of  export  commis- 
sion houses,  75 
Shipping  permit,  use  of,  188 
Shipping  receipts,  use  of,  188 


Signatures,  care  in   affixing  to   let- 
ters, 140 
desirable  on  invoices,  175 
required  on  orders,  134 
Size  of  country,  factor  to  consider, 

17 
Sizes,  special  requirements,  300 
Slang,  translation  impossible,  64 

what  to  be  used,  264 
Social  life,  importance  of,  102 
South   American   expoi-ts,    table   of, 

529-530 
South  America   Year   Boole,   impor- 
tance of,  15 
Southern   Railway   Company,    Latin 
American    Trade    Extension, 
30 
Spanish,  list  of  books,  471 
Spanish  language,  where  used,  137 
Spanish  readers,  list  of,  470-4'?! 
Specialties,  importance  of,  42 
Standardization,  need  for,  301 
Stationery,  importance  of,  138 
for    Latin    American    correspond- 
ence, 138 
for  salesmen,  90 
Statistics,  analysis  of,  12 

of    Latin    American    trade,    529, 
530,  531 
"Statesmen's  Year  Book,"  impor- 
tance of,  15 
Steamship   facilities,   advantage   of, 

310 
Steamship  lines,  business  with,  37 

list  of,  310,  516-517 
Stock  of  parts,  maintenance  of,  298 
Store  buildings,  127 
Study,  of  classes,  16-24 
importance  of,  46 
of  Latin  American  trade  problems, 
13 
Substitutions,  to  be  avoided,  158 
Sugar  mills,  business  with,  38 
System,  why  indispensable,  22 

Tariff   systems,  basis  of,   of  Latin 

America,  229 


iU-t 


INDEX 


Tariff  systems,  how  to  study,  228 
in  Latin  America,  228 
la^vs,  how  tariff  works,  229 
preferential,  231 
tariff  effected  by  weights,  229 
custom  house  regulations,  237 
division   of,  236 
Drawback  Law,  238 
drawbacks,  how  obtained,  238 
effect  of,  on  packing,  158 

on  sales,  25 
equality   of,   232 

exemption    from,    of    certain    ar- 
ticles, 232 
how  to  obtain  information  about, 

236-237 
information    about,    from    Consul, 

235 
principle  of,  in  each  country,  232, 
233-235 
Taxes  (salesmen's),  how  payment  is 
avoided.  111 
on  commercial  travelers.  111 
typical  examples,  112 
Technical  copy,  avoidance  of,  273 
Technical    journals,    distributed    by 
Consul,  330 
influence  of,  267 
use  of,  271 
Temperature,  effect  of,  on  packing, 

155 
Tr-^-ms,  European,  202 

misunderstanding    regarding,    74- 

201 
need  for  considering,  17 
Territory,   most   desirable   to  cover, 
25 
subdivision  of,  55 
Time  required,  to  develop  trade,  100 
Tours    of    Latin    America,    typical 

rates,   533-534 
Trade  journals,  advertising  value  of, 
271 
distribution  by  Consuls,  330 
Trade-marks, 

details  of  registration  of,  292 
documents   required    for,    291 


Trade-marks,  features  of,  288 

how  stolen,  289 

importance  of,  287 

importance  of  color  of,  258 

qualifications  of,  287 

registration  of,  agents  for,  290 
desirable,  288 
how  safeguarded,   289 

value  of  design  of,  288 
Translators,  how  obtained,   266 

requirements  of,  265 
Translations,  character  of,  265 

literal,  to  be  avoided,  139 

slang,  impossible  to  travelers,  13v) 

technical,  how  made,  265 
importance  of,  265 
Transportation,   condition  of,  118 

effect  of  animal,  156 
Transshipments,  how  handled,  186 
Traveling,  clothing  for,  120 

expense  of,  118 

necessities  for,  120 
Traveling  salesmen,  advance  letters 
for,  89 

advantages  of,  81 

character  of,   102 

conferences     of,     with     American 
Consul,  99 

credentials  of,  89 

diflSculty  in  obtaining,  81 

equipment  of,  87 

how  to  obtain,  83 

importance  of  initial  visits  of,  97 

letters  of  authority  for,  88 

letters  of  introduction  for,  87 

mail,  points  of,  90 

passports  for,  89 

qualifications  of,  82-101 

taxes  on,   111 

things  to  avoid,  98 

training   of,   85 

treatment  of,  103 

trunks  for,  91 

See   also  Salesmen 
Trunks,  character  of,  92 

for  samples,  91 

other  factors  in   selection,  93 


INDEX 


565 


Trunks,  packing  and  •weighing  con- 
tents, 93 

Uruguay,  business  conditions  in,  11 
general  description  of,  457,  460 

Vacation  trips,  114 
A'enezuela,    business    conditions    in, 
11 

general  description  of,  460-463 
Visits,  initial  ones  important,  98 

when  few  are  desirable,  78 


War,  influence  of  European,  2 
Weight,    consideration    of,   in   pack- 
ing, 158 
meaning  of  tare,  gross,  net,  legal, 
160-161 
Weights  and  measurements,  in  Latin 
America,   527 
need  to  mark  cases  with,   165- 

166 
how  affect  freight  charge,  158 
use  of  metric  system,  244 
Wholesale  importers,  127 


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